On Monday, SpaceX shares rose almost 8%, reaching their highest level since mid-June, shortly after the company executed a record initial public offering. This increase in stock price, which closed at $171.09, was driven by a note from Morgan Stanley analysts who deemed SpaceX 'cheap' at current prices and set a price target of $300, suggesting a potential 75% upside.
The analysts highlighted several factors contributing to this bullish outlook, including upcoming AI product releases, progress on the Starship rocket, and additional contracts in the neocloud sector. Recently, SpaceX achieved multiple historic flights, including a crewed mission to the International Space Station and the launch of Google AI chips, which further bolstered investor confidence.
The analysts encouraged buying shares ahead of the next Starship test flight and the third-quarter earnings report expected later this month. The Starship rocket, designed to be fully reusable, is anticipated to significantly enhance SpaceX's business operations. A successful test flight could serve as a major catalyst for the stock.
Additionally, SpaceX is expanding its AI business, which has generated substantial revenue through partnerships with companies like Google and Anthropic. Musk's close ties to the U.S. government, particularly through defense contracts, also contribute to SpaceX's financial strength, with over $12.7 billion earned from the Defense Department.
As Musk's wealth surged to $1.03 trillion, he was notably absent from a New York City Council hearing on AI regulation, where concerns about the economic impact of AI were discussed