SpaceX shares climbed nearly 8% on Monday, reaching their highest level since mid-June, following the company's record initial public offering. This surge has returned Elon Musk to the trillionaire club, marking a significant milestone for both the company and its founder [1]. The rally was triggered by a Sunday note from Morgan Stanley analysts, who described SpaceX as 'cheap' at current prices and recommended buying the stock. They set a price target of $300, which represents a roughly 75% increase from Monday's closing price of $171.09 [1].
Morgan Stanley highlighted several catalysts for SpaceX's growth, including upcoming AI product releases, progress on the Starship rocket, and new neocloud contracts. The analysts advised investors to purchase shares ahead of the next planned Starship test flight and the third-quarter earnings report expected in late October [1]. Late last week, SpaceX conducted multiple historic launches in a single day, notably sending a crewed mission for NASA to the International Space Station and launching Google AI chips into orbit [1].
Starship, SpaceX's next-generation spacecraft, is the largest rocket ever built and is designed to be fully reusable. Its successful deployment is expected to significantly enhance SpaceX's business by enabling the launch of Starlink satellites and transporting cargo and crews for various clients. Morgan Stanley analysts noted that a successful upper stage ship catch in the next Starship test flight could be 'the biggest positive catalyst since the IPO,' as previous test flights have only achieved splash downs in the ocean without proving reusability [1].
SpaceX's artificial intelligence business is also contributing to its momentum, bolstered by the acquisition of Musk's xAI last year and the recent purchase of Cursor. Although SpaceX's Grok model has not matched the success of leading AI models from OpenAI and Anthropic, the company is generating substantial revenue by renting out AI capacity to firms like Google and Anthropic [1]. Additionally, SpaceX continues to benefit from its strong ties to the U.S. government, earning over $12.7 billion from Defense Department contracts to date. Musk was recently appointed co-lead of Project Meridian by the Pentagon, further cementing SpaceX's role in defense and military technology [1]. Over the weekend, Musk announced the renaming of SpaceX's AI division from SpaceXAI to SpaceXSI, aligning with President Donald Trump's new branding [1].
CONCLUSION
SpaceX's stock rally reflects strong investor confidence, driven by analyst endorsements, AI expansion, and Starship advancements. The company's deepening government ties and robust defense revenues further support its growth outlook. With upcoming test flights and earnings reports, SpaceX remains a focal point for market watchers seeking high-impact catalysts.