SpaceX shares jumped 11% after Morgan Stanley argued public markets are underestimating the company's AI enterprise platform, while Elon Musk teased the coming Grok 4.7 model. The rally pulls the stock back toward its June levels, even as its round trip from IPO highs echoes the pattern of other hot listings.
SpaceX shares surged 11% after a Wall Street endorsement of its artificial-intelligence capabilities and renewed enthusiasm over its enterprise software products. Morgan Stanley analyst Adam Jonas argued in a client note that recent product rollouts from the company's AI division, SpaceXAI, show a broader software engine the market has yet to price in. Elon Musk added to the momentum by teasing the roadmap for Grok 4.7, set for release later this month.
Wall Street Re-Rates SpaceXAI
Jonas pointed to the beta launch of Grok Bot, an always-on assistant that coordinates multi-agent systems inside cloud environments, currently available to SuperGrok Heavy, Cursor Ultra, and Cursor Teams Premium subscribers on desktop and iOS. He argued SpaceX holds two structural advantages that insulate it from commoditization: proprietary, real-time data pipelines spanning X, Starlink telematics, and Cursor's developer network, and a physical-world moat built on vertically integrated compute and orbital connectivity. The note followed Morgan Stanley's estimate that Cursor will reach $8 billion in annual run-rate by year-end and scale to $33 billion by 2030, leveraging an enterprise footprint that already includes 50,000 businesses and roughly two-thirds of the Fortune 500.
Under Morgan Stanley's sum-of-the-parts read, SpaceX's core launch and Starlink connectivity businesses are worth $127 per share, leaving a residual valuation of just $12 per share for its Consumer and Enterprise AI units. Jonas framed the coming lock-up expiration as a buying window, calling it "a rare entry point into a generational compounder that converts energy into swarming". Musk, for his part, said Grok 4.7 would exceed all current models, pointing to the company's physical hardware operations as a data edge. The company's current model, Grok 4.6, is a 1.5-trillion parameter system priced at $2 per million input tokens that scored 61 ELO on the Artificial Analysis Intelligence Index.
A Round Trip From the IPO
The rally still leaves SpaceX far below its post-IPO peak. The stock went public at $135 per share on June 12 and closed at a record high of $211.39 on June 16, before sinking back toward its listing price. At its high, SpaceX's market cap reached $2.64 trillion, or 141 times the $18.7 billion in revenue it generated in 2025 even though that revenue had risen 33% for the year.
Other widely hyped debuts, including Meta, Alibaba, and Snowflake, faced similar pullbacks after their own market debuts. Separately, SpaceX's valuation and its lock-up expirations through year-end should limit its near-term gains.
Sources: Investing.com, The Motley Fool
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