Why SpaceX stock is soaring around 7% today

SpaceX stock SPCX rose around 7% on Wednesday after CEO Elon Musk outlined ambitious plans for artificial intelligence and discussed Starlink and the company’s longer-term future during an all-hands meeting with employees.

The stock rose to $142.62 after closing Tuesday down 3.9% at $133.29, putting shares back above their $135 IPO price.

Musk held the employee meeting Tuesday, with artificial intelligence emerging as a central theme.

He said AI had become an “extremely important part of SpaceX's future” and predicted that the technology could soon become the company’s largest source of revenue.

“Probably our AI revenue — not probably, definitely — our AI revenue will exceed all other SpaceX revenue probably in September, like next month,” Musk said during the meeting.

“And will significantly exceed all other SpaceX revenue in the fourth quarter,” he added.

Musk outlines SpaceX AI ambitions

Musk also discussed plans for training Grok, SpaceX’s family of large language models.

“We're going to be training Grok on the sum total of all SpaceX information,” Musk said. “So in a way, it'll be trained on you.”

He said SpaceX employees would be “the parents of the AI,” adding that the system would inherit their thoughts, ideas and beliefs.

Musk did not provide details on how Grok would be trained using information from SpaceX employees.

The comments come as companies face scrutiny over the use of employee-generated data to train AI models.

Meta rolled out a program in April to train its AI models on employees’ keystrokes, a decision that drew major backlash and has since been paused.

Musk also projected that AI-based internet traffic would be 1,000 times human traffic within five years, underscoring his expectations for the technology’s growth.

Musk also highlighted Starlink, SpaceX’s space-based broadband business, saying the service had 22 million mobile subscribers.

The comments form part of Musk’s broader vision for SpaceX, which includes his goal of making humanity a multi-planetary species.

His latest AI projections suggest the company increasingly sees artificial intelligence as a major business opportunity alongside its existing space and satellite operations.

Morgan Stanley bullish on SpaceX stock

SpaceX shares have fallen sharply from their June 16 high of $201.80.

The stock had dropped more than 30% from that record ahead of the end of the first lockup period for shares on Thursday.

The expected selling pressure did not materialize, however, and shares have since recovered above their IPO price.

The next lockup period ends on August 20, a date investors are watching as additional shares could become eligible for sale.

Morgan Stanley said earlier this week that SpaceX’s artificial intelligence business could significantly increase the company’s value.

“As investors see more breadcrumbs on the Cursor/Grok story, we see potential for the implied valuation discount on SpaceX’s AI business to lift, driving potentially substantial appreciation of the stock,” analyst Adam Jonas wrote in a report to clients.

Jonas said few investors currently appear bullish on SpaceX’s AI business beyond its neocloud operations, creating what he described as an upside-skewed catalyst path at current levels.

Morgan Stanley maintained its Overweight rating and $300 price target on SpaceX shares.