Morgan Stanley says SpaceX at $100 would price AI business at zero

SpaceX shares have slid to a level where the market is effectively saying its AI business is worth zero. That’s the takeaway from Morgan Stanley analysts, who note that with the stock trading near $100, investors are assigning almost no value to the AI capabilities SpaceX absorbed when it merged with Elon Musk’s xAI earlier this year. For a company that Morgan Stanley projects could generate roughly $190 billion in AI-related revenue by 2030, that’s quite the discount. The math behind the zero When SpaceX and xAI completed their merger in February 2026, the combined entity carried a valuation of approximately $1.25 trillion. The IPO target was even loftier: $1.75 trillion. Earlier funding rounds had priced shares at $421 apiece, based on an $800 billion valuation and a $2.56 billion investment. Now the stock is hovering around $100. According to Morgan Stanley’s breakdown, that haircut effectively wipes out the entire implied value of SpaceX’s AI operations, leaving only the legacy space launch and Starlink businesses reflected in the price. Morgan Stanley’s analysts aren’t buying it. Their view is that the underlying fundamentals for SpaceX remain largely intact, and that current ...