Musk becomes trillionaire again as SpaceX stock jumps
What's the story
SpaceX's shares soared nearly 8% on Monday, hitting their highest value since mid-June. The rise comes after the company successfully launched a crewed NASA mission and Google's AI chips into orbit last week. The stock has been on an upward trajectory after hitting its lowest point in August. The surge in SpaceX's stock price has pushed CEO Elon Musk back into the trillionaire club.
Investment advice
Morgan Stanley sets $300 price target for SpaceX shares
The recent surge in SpaceX's stock price was further fueled by a note from Morgan Stanley analysts.
They called the company's shares "cheap" at current prices and emphasized future AI product releases, Starship progress, and additional neocloud contracts.
The analysts have set a $300 price target for SpaceX's shares, which is about 75% higher than Monday's closing price of $171.09.
Future prospects
Analysts recommend buying ahead of Starship test flight
The Morgan Stanley analysts also suggested investors buy SpaceX shares ahead of the company's next planned test flight for its massive Starship rocket.
They also advised purchasing before the third-quarter earnings report, which is expected in late October.
The Starship is SpaceX's next-generation spacecraft and the largest rocket ever built, designed to be fully reusable with both its upper stage and booster able to land safely back on Earth.
Business expansion
AI business boosts SpaceX's revenue
SpaceX is also getting a boost from its artificial intelligence business, which it gained through the acquisition of Musk's xAI last year and expanded through the recent acquisition of Cursor.
While the company's homegrown Grok model hasn't taken off compared to leading models from OpenAI and Anthropic, SpaceX is generating hefty revenue by renting out capacity to companies like Google and Anthropic.