SpaceX shares have fallen roughly 18% below their IPO price since debuting mid-June, but Morgan Stanley sees a buying opportunity in the dip.
The stock initially surged nearly 50% after raising $86 billion, only to retreat to around $110.85 per share.
Analyst Adam Jonas insists the fundamentals remain strong despite the pullback, maintaining a buy rating with a $300 price target.
More than half of that target hinges on SpaceX’s artificial intelligence business, including projects like Grok and Cursor, which the market seems to undervalue.
Concerns have surfaced about high AI development costs, unclear revenue streams, and potential distraction from core aerospace and satellite services.
Jonas dismisses these worries as overblown, noting that the current share price implies investors assign little to no value to SpaceX’s AI ventures, possibly even negative value.
Adding pressure, shareholder lock-up expirations may increase the available shares in the market when insiders and early investors are allowed to sell.
This stock slump aligns with a broader tech retreat fueled by fears over massive expenditures on AI infrastructure amid rising oil prices, inflation, and geopolitical tensions.
However, major banks including Goldman Sachs and JPMorgan maintain buy ratings on SpaceX, reflecting confidence in the company's strengths in rockets, satellites, and AI.
