Morgan Stanley Analyst: SpaceX Stock Drop to $100 Implies Zero AI Valuation
Morgan Stanley analyst Adam Jonas stated that if SpaceX's stock price falls to $100, it would indicate that the market values the company's AI business at zero. This comes after SpaceX's reported IPO and subsequent stock price fluctuations amid broader market skepticism regarding AI capital expenditures. This analysis highlights growing investor skepticism and cooling sentiment toward massive capital expenditures in AI and infrastructure. It also reflects how closely SpaceX's valuation has become tied to its AI initiatives like Grok and Cursor. Jonas set a target price of $300 per share for SpaceX, with over half of that valuation derived from its AI business. However, many investors discount the value of Grok and Cursor due to high capital expenditures and business model uncertainties compared to SpaceX's core aerospace and connectivity operations.
## BACKGROUND
SpaceX is an aerospace manufacturer and space transport services company, which reportedly expanded into AI through its SpaceXAI subsidiary, including the acquisition of the AI coding assistant Cursor and the development of the Grok AI model. However, reports of SpaceX going public via an IPO and owning these AI assets contradict its actual status as a private company, where Grok is developed by Elon Musk's separate startup, xAI.