Spacex closed up 7.6%, reaching a new high since June, helping Musk "regain" his trillionaire status
SpaceX's stock surged nearly 8% on Monday, with Elon Musk's net worth rebounding to approximately $1.03 trillion, reclaiming the top spot on the billionaire list. Morgan Stanley released a bullish report, setting a target price of $300 and stating that the company's value is underestimated. The rally was driven by multiple catalysts, including expectations for Starship recovery, expansion of AI business, and over $12.7 billion in defense contracts.
SpaceX shares surged nearly 8% on Monday, pushing Elon Musk’s net worth back above the trillion-dollar mark. This rally was driven by a bullish report from Morgan Stanley analysts released the previous day, which described the stock as ‘undervalued’, alongside a series of recent milestone flight missions by the company.
At Monday’s close, SpaceX stock was priced at $171.09, reaching its highest level since mid-June. According to the Forbes Real-Time Billionaires List, Musk’s net worth increased by approximately $30.6 billion that day, bringing his total wealth to about $1.03 trillion, topping the billionaire rankings.
This marks Musk’s return to the trillion-dollar club for the first time since SpaceX’s initial public offering in June this year.
Since bottoming out in early August, SpaceX stock has rebounded by approximately 58%. Morgan Stanley set a price target of $300 for the stock, about 75% higher than Monday’s closing price, and recommended that investors position themselves before the company’s next Starship test flight and Q3 financial results.
Morgan Stanley Bullish, Multiple Catalysts in Play
Morgan Stanley analysts released a research report on Sunday stating that at current prices, SpaceX’s value is clearly underestimated.
The report highlights potential catalysts such as “upcoming AI product launches, Starship development progress, and new cloud service contracts,” maintaining an ‘overweight’ rating.
Last week, SpaceX accomplished several historic flight missions within a single day, including a manned mission for NASA, transporting astronauts to the International Space Station, and launching Google’s AI chips into orbit.
Analysts noted that if SpaceX attempts to recover the Starship’s upper stage in the next test flight, it could become “the most significant positive catalyst since the IPO.” In previous tests, the Starship’s upper stage always splashed down in the ocean, with reusability yet to be demonstrated.
Starship is the largest rocket ever built by humans, designed for both the upper stage and booster to be safely recovered and reused. SpaceX plans to use Starship to deploy Starlink satellites into orbit, as well as handle other commercial and government cargo and crewed missions.
AI Business Expansion, Defense Contracts Support Revenue
Beyond its core aerospace business, SpaceX’s artificial intelligence division has also become a major driver behind the stock’s rise.
The company entered the AI space through the acquisition of Musk’s xAI and further expanded by acquiring the code editor Cursor. Although its self-developed Grok large model still lags behind OpenAI and Anthropic in market influence, SpaceX is generating considerable revenue by leasing computing power to clients such as Google and Anthropic.
On the government contract front, according to FedScout data, SpaceX has received more than $12.7 billion in cumulative contract revenue from the U.S. Department of Defense, with the share of defense business continuously increasing.
On Wednesday, September 30, the Pentagon appointed Musk as co-head of “Project Meridian,” which aims to identify weapons, technology, and military capabilities needed for the United States in future wars.
On the branding front, Musk announced last weekend that he is renaming his AI subsidiary from SpaceXAI to SpaceXSI, aligning with the executive order signed by President Trump on September 29 this year.
The order requires government agencies to use “super intelligence” (SI) instead of “artificial intelligence” in official terminology. However, as of Monday, no official name change steps have yet been implemented.
Record-Breaking IPO, Financial Results Show Rapid Growth Alongside Losses
SpaceX went public on Nasdaq on June 12, with an IPO price of $135, issuing 555.6 million shares and raising $75 billion, surpassing the record set by Saudi Aramco in 2019.
In its first week of trading, shares peaked at a closing high of $201.80 on June 16, before gradually retreating and bottoming out in early August. Following the current rebound, SpaceX stock is up approximately 27% from its IPO price, with Musk holding around 82.4% of the company’s voting rights.
Financially, SpaceX is expected to achieve revenue of $18.67 billion in 2025, up 33% year-on-year; however, due to heavy investment, net profit turned from $791 million last year to a loss of $4.94 billion.
According to Forbes’ estimates, Musk’s current net worth exceeds that of Amazon founder Jeff Bezos by over $628 billion, with Bezos’ estimated net worth around $371.5 billion.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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Updated Version 4 - Mattel Investor Ariel Urges Sale Amid Stalled Turnaround
Ariel Investments holds a 5.4% stake in Mattel and believes the stock remains severely undervalued. Mattel stated it will take into account the opinions of Ariel and other shareholders. According to sources, Authentic Brands Group approached Mattel last week, with a potential valuation of around $6 billion. Analyst comments and a chart were added in paragraph 10. Juveria Tabassum/Angela Christy M Reuters, October 5 – A letter obtained by Reuters shows that a major shareholder of Mattel (MAT.O) on Monday urged the Barbie-maker to explore a sale, citing stagnant growth in performance and profitability. Ariel Investments, holding a 5.4% stake in Mattel, stated that the company’s stock is still severely undervalued. “We believe that strategic buyers would be willing to acquire your company at a price significantly above the current share price,” Ariel Co-CEO John Rogers wrote in a letter to Mattel’s board. The asset management firm suggested Mattel's options include “divesting significant assets, mergers, and/or an outright sale of the company.” Ariel believes other toy companies may be interested in Mattel’s asset portfolio, as well as entertainment firms and traditional private equity companies. In recent years, despite Mattel’s stabilizing business and the box-office success of the Barbie movie, the company has faced fluctuating sales and rising input costs. Operating profit has declined for six consecutive quarters. In after-hours trading, Mattel's shares rose 0.9% to $16.20. Ariel’s initiative comes as Mattel undergoes leadership changes (link). CEO Ynon Kreiz stepped down last month to become Co-CEO of Paramount Skydance (PSKY.O), while board member Roger Lynch—former editor-in-chief of Vogue and head of Condé Nast, parent company of The New Yorker—will assume the CEO role next month. Mattel replied to Reuters by email: “Our board and management team are committed to acting in the best interests of all shareholders, and will consider the views expressed in the letter from Ariel Investments, as well as those of other Mattel shareholders.” This is the second time this year investors have asked Mattel to consider strategic options. In May, Mattel investor Southeastern Asset Management called for the company to explore various options (link), including privatization, acquisition by competitor Hasbro (HAS.O), or by a major media company that could value Mattel’s assets more fairly than the public market. Last week, a person familiar with the matter told Reuters that Authentic Brands Group (AUTH.N) approached Mattel about a potential acquisition (link), which could value the toymaker at about $6 billion or higher. The source noted that there is no guarantee Mattel will accept Authentic Brands’ proposal, and the company is not conducting a formal sale process at this time. Following the news, Mattel’s share price soared. Despite the rebound, the stock remains down about 20% year-to-date. According to London Stock Exchange Group (LSEG) data, Mattel’s 12-month forward price-to-earnings ratio stands at 9.99, compared to an industry average of 14.03. “I think this just reflects the market’s frustration about the business possibly being a bit stagnant. Given the current level of valuation, now may be a good time to turn around the business away from the spotlight of investors,” said Morningstar analyst Jaime Katz. (For the convenience of non-English speakers, Reuters automatically translates its reports into several languages. As automated translations may contain errors or lack context, Reuters does not guarantee the accuracy of automated translation texts and provides them solely for readers’ convenience. Reuters assumes no liability for any loss or damage resulting from the use of the automated translation feature.)
