Key Takeaways
- SpaceX stock jumped 8% to a June high.
- Musk’s wealth topped $1 trillion again.
- Starship and AI fuel investor optimism.
SpaceX stock surged nearly 8% Monday to their highest level since June, boosting Elon Musk’s wealth above $1 trillion as investors responded to the company’s recent launches and growth prospects.
SpaceX Shares Surge On Growth Expectations
The rally followed a Morgan Stanley research note that described SpaceX stock as undervalued and highlighted potential growth from artificial intelligence products, Starship development and new cloud-computing contracts.
The analysts recommended buying the stock and set a $300 price target, about 75% above Monday’s closing price of $171.09. The recommendation helped extend a recovery that has lifted SpaceX shares about 58% from their August low.
SpaceX went public June 12 and reached a record closing price of $201.80 four days later. The shares subsequently declined before beginning a sustained recovery in August.
The company’s recent launch activity has also strengthened investor attention. Last week, SpaceX launched a crewed NASA mission to the International Space Station and separately sent Google’s artificial intelligence chips into orbit.
Starship Could Drive SpaceX’s Next Growth Phase
Morgan Stanley analysts said investors could benefit from buying SpaceX shares before its next planned Starship test and its expected third-quarter earnings report later this month.
Starship is designed as a fully reusable spacecraft and rocket system. SpaceX plans to use the technology to launch Starlink satellites and transport cargo and crew for commercial and government customers.
A successful attempt to catch the Starship upper-stage vehicle during its next test could become a major catalyst for the company, according to the Morgan Stanley analysts. Previous tests have ended with the upper stage splashing down in the ocean rather than demonstrating full reusability.
SpaceX is also expanding its presence in artificial intelligence after acquiring Musk’s xAI last year and the coding company Cursor more recently. The company generates revenue by providing computing capacity to technology companies, including Google and Anthropic.
AI And Government Contracts Expand Musk’s Business Reach
Musk’s growing business empire also benefits from SpaceX’s government contracts. The company has earned more than $12.7 billion from work with the U.S. Department of Defense, according to FedScout, as its government and defense business expands.
The Pentagon recently appointed Musk as co-lead of Project Meridian, an initiative focused on identifying technologies and capabilities that the U.S. could require in future conflicts.
SpaceX’s rising valuation has also increased Musk’s personal fortune. Forbes’ real-time billionaire ranking placed his wealth at about $1.03 trillion, based largely on his holdings in SpaceX and Tesla.
The latest gains came as Musk was absent from a New York City Council hearing examining artificial intelligence and its impact on the economy. Executives from OpenAI, Anthropic, Google and Meta attended the hearing.
Councilmember Shekar Krishnan said AI has affected the economy and contributed to rising technology valuations and the wealth of AI company leaders.
SpaceX’s combination of launch services, Starlink, artificial intelligence, and government contracts gives investors several potential growth drivers as the company approaches its next earnings report and Starship test.
