SpaceX Soars: Stock Surge Propels Elon Musk Back to Trillionaire Status

Key Points:

• SpaceX shares surged nearly 8% on Monday, marking their highest point since mid-June and reinstating CEO Elon Musk's trillionaire status.
• Recent successes include a crucial crewed NASA mission launch and the deployment of Google's AI chips into orbit.
• The stock has shown a strong recovery since hitting a low in August.

SpaceX shares experienced a significant rally on Monday, climbing nearly 8% to reach their highest valuation since mid-June. This surge has propelled CEO Elon Musk back into the trillionaire club. The upward momentum follows a positive assessment from Morgan Stanley analysts, who labeled SpaceX as "cheap" at current prices. They highlighted the company's promising future AI product releases, advancements in Starship development, and an increase in neocloud contracts as key drivers for potential growth. The analysts have set a $300 price target for the stock, indicating a substantial upside of approximately 75% from its Monday closing price of $171.09.

The company's recent operational achievements have also contributed to investor confidence. Last week, SpaceX executed a series of high-profile launches, including a successful crewed mission for NASA to the International Space Station and a separate launch carrying Google's advanced AI chips into orbit. Morgan Stanley suggests that investors consider acquiring SpaceX shares before the upcoming test flight of the massive Starship rocket and ahead of the company's third-quarter earnings report, anticipated in late October.

Starship, billed as the largest rocket ever constructed, represents SpaceX's next-generation spacecraft. Designed for full reusability, both its upper stage and booster are engineered for safe landings. This innovative system is expected to significantly enhance SpaceX's business operations, facilitating the deployment of Starlink satellites and the transportation of cargo and passengers for various clients. Analysts pinpoint a successful "catch" of the Starship upper stage during its next test flight as a potentially major catalyst, surpassing the impact of the initial public offering.

SpaceX's burgeoning artificial intelligence division, bolstered by the acquisition of Musk's xAI and the recent purchase of Cursor, is also a significant revenue generator. Although its Grok model faces stiff competition from established players like OpenAI and Anthropic, SpaceX is capitalizing on its AI capabilities by leasing capacity to major tech firms, including Google and Anthropic.

Musk's strategic alliances, particularly with the Trump administration, are also noteworthy. The Pentagon recently appointed Musk as a co-lead for Project Meridian, an initiative focused on identifying future military technologies. Given that SpaceX derives a substantial portion of its revenue from U.S. government contracts, exceeding $12.7 billion to date from the Defense Department, these political ties are strategically advantageous. Musk has also indicated plans to rename SpaceX's AI division, SpaceXAI, to SpaceXSI, aligning with President Donald Trump's branding initiatives.

While SpaceX's stock climbed, Musk was notably absent from a New York City Council hearing on AI regulation, where executives from OpenAI, Anthropic, Google, and Meta testified. Councilmember Shekar Krishnan commented on the pervasive influence of AI, noting its impact on the economy, inflated valuations, and the growing net worth of AI CEOs like Musk, who has now become the first trillionaire.

According to Forbes' real-time billionaires list, Musk's net worth currently stands at $1.03 trillion, encompassing his stakes in both Tesla and SpaceX. SpaceX went public on June 12th, and after an initial surge to a record close of $201.80 on June 16th, the stock experienced a decline, bottoming out in early August. Since then, it has recovered approximately 58%.

SpaceX did not immediately respond to requests for comment.