Space Exploration Technologies Corp

(NASDAQ)
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Bullish +75

SpaceX shares can more than double, Morgan Stanley says. The bull thesis isn't based on space business

AI-generated analysis

🚀 Morgan Stanley analyst Adam Jonas rates SpaceX overweight with a $300 price target, implying the stock could more than double from current levels.

🤖 The bull case relies on SpaceX's artificial intelligence business following its merger with xAI and acquisition of AI coding toolmaker Cursor.

💰 SpaceX agreed to acquire Cursor for $60 billion in stock, a deal expected to close within the next few weeks.

📈 Over 60% of Fortune 500 companies and 50,000 enterprises use Cursor, with the startup already generating over $1 billion in annualized revenue.

🔍 The acquisition is designed to bolster SpaceX's AI competitiveness against industry rivals like OpenAI and Anthropic.

📉 SpaceX shares are currently down about 6% in the past month but trade a fraction above their June IPO price of $135.

✅ The Street consensus remains bullish, with 29 out of 36 analysts covering the stock issuing buy or strong buy ratings.

Bullish Signals
  • Morgan Stanley maintains an overweight rating on SpaceX shares and sets a $300 price target that implies more than double the current stock price.
  • The acquisition of AI startup Cursor for $60 billion in stock is expected to significantly boost SpaceX's artificial intelligence business and top-line revenue.
  • High adoption rates of Cursor by over 60% of Fortune 500 companies provide immediate catalysts for growth following the transaction closing.
  • The deal positions SpaceX to compete more effectively with major AI industry giants like OpenAI and Anthropic after its merger with xAI.
  • Analyst Adam Jonas notes that progress on Cursor and subsequent model releases will serve as elegant catalysts to lift the implied valuation discount.
Full Analysis
SpaceX shares could more than double according to a new report from Morgan Stanley analyst Adam Jonas, who maintains an overweight rating with a $300 price target. The bullish thesis centers on the company's artificial intelligence division rather than its traditional space exploration business, driven by the recent acquisition of AI startup Cursor. Morgan Stanley served as the lead underwriter for SpaceX's $2 trillion initial public offering in June and noted that the high adoption rate of Cursor's coding tool is already boosting revenue. The firm expects the transaction to close within a few weeks, with subsequent model releases serving as catalysts to lift the implied valuation discount on SpaceX's AI business. Following the merger with xAI earlier this year, the acquisition of Cursor positions SpaceX to compete more effectively against industry giants like OpenAI and Anthropic. With over 60% of Fortune 500 companies using Cursor and the startup having topped $1 billion in annualized revenue by November 2025, the deal is expected to provide substantial upside for investors. Current market sentiment remains mixed as SpaceX shares are down about 6% in the past month and trade just above their IPO price of $135. However, the consensus among Wall Street analysts remains strongly positive, with 29 out of 36 covering the stock rating it a buy or strong buy based on these AI growth prospects.