SpaceX's stock closed up 7.6% on October 5 after Morgan Stanley called it “cheap”, hitting its highest since June and returning Elon Musk to trillionaire status
SpaceX shares rose almost 8% on Monday, reaching their highest since mid-June, shortly after Elon Musk's company held its record initial public offering.
Context & Ripple Effects
SpaceX entered public trading in June at $150 after a $135 offering price and a $1.9 trillion valuation; its Nasdaq debut was followed by a nearly 20% first-day close. A subsequent move placed its market value just above Amazon’s, demonstrating how quickly public markets were treating the company as a mega-cap peer.
The latest advance restores the shares to their strongest level since mid-June and follows Morgan Stanley’s favorable valuation view. It also keeps investor attention on Musk’s stated ambition for roughly $1 trillion in 2030 revenue, versus $18.7 billion reported for 2025.
First-order effects
- SpaceX shareholders gain from the 7.6% rise, while the increase returns Elon Musk to trillionaire status.
- Morgan Stanley’s “cheap” assessment gives SpaceX’s post-IPO valuation a prominent institutional endorsement at a point when the shares have recovered their June level.
Second-order effects
- The rebound refocuses the market’s appraisal of SpaceX on execution against Musk’s 2030 revenue ambition, rather than solely on the volatility of its first days as a public company.
- SpaceX’s valuation again invites comparison with established mega-caps after its earlier market-cap move above Amazon, raising the bar for the operating results investors expect from the newly public company.
Third-order effects
- If public investors continue to price SpaceX against mega-cap technology companies, the company’s strategic plans will face a more continuous market test than they did as a private business.
- The episode points toward capital markets assigning infrastructure-scale valuations to companies whose long-term revenue expectations depend on execution over many years.
The trend: SpaceX’s IPO is turning a formerly private infrastructure company into a publicly traded mega-cap whose valuation is increasingly anchored to long-range growth expectations.