SpaceX stock closes up 7.6% after Morgan Stanley called SPCX "cheap", reaching its highest level since mid-June and returning Elon Musk to trillionaire status

SpaceX stock reaches its highest valuation since its IPO, making Elon Musk a trillionaire again and potentially signaling a buying opportunity with a 75% upside.

SpaceX's stock closed up 7.6% on Monday, reaching its highest point since mid-June and re-elevating CEO Elon Musk to trillionaire status. This surge followed a positive note from Morgan Stanley analysts who labeled the stock "cheap" and set a $300 price target, a significant increase from its $171.09 closing price. The analysts cited future AI product releases, advancements in Starship development, and new cloud contracts as key growth drivers. The rally also follows a successful week for SpaceX, which included launching a crewed NASA mission and delivering Google's AI chips into orbit. The stock has rebounded considerably since hitting a low in early August, now up approximately 58%. Morgan Stanley specifically recommended buying shares before SpaceX's upcoming Starship test flight and its third-quarter earnings report.

Morgan Stanley's bullish call on SpaceX, coupled with recent successful launches and potential AI revenue streams, suggests a renewed investor confidence in the company's diversified business model. The firm's price target of $300 implies significant growth potential driven by Starship's development and upcoming AI-related product releases, which could unlock new markets and revenue opportunities beyond traditional space services.

The market appears to be valuing SpaceX not just as a launch provider but as a multifaceted technology company with substantial AI and cloud infrastructure ambitions. This broader valuation approach could influence how other space-focused companies are perceived and financed, potentially attracting more investment into integrated space and AI ventures.