JPMorgan maintained its $240 target price on SpaceX (SPCX) stock, representing nearly 75% upside from current levels, with the stock rising 2% in pre-market trading on Tuesday following the latest developments. According to reports from JPMorgan, top analyst Doug Anmuth maintained his Overweight rating while becoming 'increasingly positive' on Grok, the AI model developed by Elon Musk's xAI. The bank's analyst cited artificial intelligence as the primary driver for this optimistic outlook, with SpaceX valued at over $3 trillion at the target price. The stock has struggled since its record June debut, currently trading at $137.13 in Tuesday premarket trading, up approximately 1.6% following the latest developments.
The bank's bullish stance centers on SpaceX's AI capabilities, particularly the Cursor coding platform acquired on August 14. As reported by JPMorgan, Cursor generated approximately $4 billion in annual recurring revenue as of June, with roughly 75% coming from business customers. This acquisition positions SpaceX to cross-sell its Grok AI model to existing Cursor customers while leveraging millions of coding sessions as training data for AI development. JPMorgan sees that enterprise customer base as a potential distribution channel for SpaceX's broader AI products while Cursor's coding data could also contribute to Grok's development. The bank expects these AI products to become core drivers of SpaceX's long-term growth, alongside launch services and Starlink. Anmuth noted that the firm has already seen tangible improvements in Grok after Cursor data was incorporated into Grok's supplemental training, with the bank expecting new models monthly through December, culminating in Grok 5 later this year.
JPMorgan highlighted significant improvements in SpaceX's AI capabilities, with Grok 4.6 shipping earlier this month with a focus on longer-running agents, coding and knowledge work. According to the bank's analysis, the model now sits on the Pareto frontier, meaning it offers the optimal combination of intelligence and cost-effectiveness. The bank said Grok 4.6 improved its standing on the Artificial Analysis Intelligence Index within a month of the previous release while remaining competitively priced, strengthening its appeal for developers and enterprise customers. Anmuth noted that Grok combines strong AI capabilities with meaningfully lower costs than competing models, which could make it more attractive to users and support broader adoption. The launch of Grok Bot for enterprise customers demonstrates SpaceX's targeting of the fast-growing market for AI productivity tools, with JPMorgan arguing that combining Cursor's software-development expertise with SpaceX's engineering knowledge could make Grok more useful for coding and complex technical work. Cursor provides AI tools that help developers write, edit, and debug software, with the platform having more than 50,000 business customers, while reports cited by JPMorgan said nearly two-thirds of Fortune 500 companies use its products.
Despite the positive outlook, SpaceX's AI unit faced significant financial headwinds, losing $1.26 billion in the last quarter and absorbing 86% of capital spending. As reported by JPMorgan, nearly 370 million shares unlock on September 9-10, which could increase the float by approximately 20% and create potential selling pressure. The timing of this supply increase coincides with the company's AI growth story, creating market dynamics for the stock. While that remains an analyst view rather than a company forecast, it underpins the bank's increasingly constructive stance on the company's AI prospects. However, investors will now be watching whether Grok can realistically contribute meaningfully to SpaceX's financial performance and justify the premium valuation JPMorgan continues to assign. The financial benefits from the Cursor combination have not yet been established in SpaceX's reported results, as the acquisition closed after the end of the second quarter.
JPMorgan's $240 target sits between several major Wall Street estimates, with Bernstein analyst Douglas Harned maintaining a $248 target and Morgan Stanley analyst Adam Jonas maintaining a $300 target, implying more than 120% upside from a $135 share price. On TipRanks, SPCX has a Moderate Buy consensus rating based on 24 Buys, five Holds, and three Sell ratings, with the average SpaceX price target of $232.35 implying 72.1% upside potential from current levels. Since its June IPO, SPCX shares have dropped 16.2%, creating potential value opportunities for investors. The spread between individual targets remains wide, with some analysts valuing SpaceX well above $200 while more bearish estimates sit substantially below its current market price. Recent retail sentiment on Stocktwits remained 'bearish' over the past 24 hours, though some users expect the stock to climb past $250 by the end of 2026. Morningstar offered a much lower assessment after the IPO, estimating fair value at $63 per share, while Oppenheimer had assigned a $190 target.
