Updated
Updated · Financial Times · Jul 7
Morgan Stanley Starts SpaceX at $300, Values Launch Business at Just $8 a Share
Updated
Updated · Financial Times · Jul 7

Morgan Stanley Starts SpaceX at $300, Values Launch Business at Just $8 a Share

3 articles · Updated · Financial Times · Jul 7

Summary

  • $300 a share is Morgan Stanley’s new target for SpaceX, with the bank assigning only $8 per share to the launch business and tying most of its valuation to Starlink and AI infrastructure.
  • Morgan Stanley projects revenue rising from $45 billion in 2026 to $319 billion in 2030 and $3.3 trillion in 2040, driven by Starlink connectivity, terrestrial compute and orbital compute deployments starting in 2028.
  • Starlink alone is modeled at $687.7 billion of 2040 revenue, while AI revenue climbs from $22 billion in 2026 to $2.6 trillion in 2040, helped near term by neocloud demand and disclosed or reported customer agreements.
  • The bullish case depends on heavy spending: Morgan Stanley estimates average funding needs of $72 billion a year in 2027-2030 and $95 billion in 2031-2034, while warning future equity dilution remains a material risk.
  • That framework assumes launch costs fall more than 99% within a decade and orbital compute reaches Earth cost parity by 2031, underscoring how much of the thesis rests on unproven technology and adoption timelines.

Insights

Can SpaceX’s AI dream justify its trillion-dollar price tag while burning billions with no profit in sight?
Is SpaceX's vertical integration a revolutionary AI solution or the foundation for an unprecedented global monopoly?
How will space-based data centers overcome the immense logistical and power challenges beyond Earth's atmosphere?