SpaceX Stock Faces $4.5M Retail Sell-Off as Morgan Stanley Eyes $600

• SpaceX stock closed at $133.29, down 3.93%, as retail investors turned net sellers with $4.5 million in shares sold
• Morgan Stanley remains bullish, keeping its $300 price target and arguing that SpaceX’s biggest upside could come from its growing AI business rather than its traditional space operations
• The key catalyst is SpaceX’s AI push, including its Cursor acquisition and expanding compute ambitions, which could give the stock a very different growth story from its initial post-IPO rally

SpaceX stock is showing two different sentiments. Retail traders sold a net $4.5 million of shares on August 7, marking their first net-selling session since the company went public in June. Meanwhile, Morgan Stanley is still looking much further ahead. It is seeing a path to $600 in its bull case. The interesting part is what is behind that target. The bank’s bullish forecast has little to do with rockets.

Also Read: XRP Weathers 200K XRP Bridge Drain as Whale Wallets Continue to Rise

Morgan Stanley’s $600 Bull Case for SpaceX Stock Is About AI

SpaceX stock closed at $133.29 on August 11, down 3.93% for the session and back below its $135 IPO price. The shares have been volatile since going public. But Morgan Stanley’s latest comments come as a game changer to the SpaceX stock.

Morgan Stanley has kept an Overweight rating and a $300 base price target on SpaceX. But its bull case goes as high as $600. Analyst Adam Jonas argues that investors may still be undervaluing the company’s AI business. This is especially as more details are emerging around its Cursor acquisition and the integration with xAI.

SpaceX agreed to acquire AI coding startup Cursor for $60 billion in stock. The deal is expected to give Musk’s company another major piece of its AI business alongside xAI and Grok. Cursor had already reached $1 billion in annualized revenue by November 2025 and later crossed $4 billion.

This is the piece Morgan Stanley thinks could change the way investors value SpaceX. Instead of treating AI as an add-on to the company’s satellite and launch operations, the bank sees it developing into a significant business of its own.

Musk is also putting more weight behind that argument. SpaceX’s AI revenue is expected to become larger than revenue from its other products as early as September, according to recent comments from the CEO.

Also Read: Coinbase Wins Abu Dhabi Approval as White House Targets September CLARITY Act Vote

Retail Investors Pull Back From SpaceX Shares

The retail picture is considerably less enthusiastic. Reports revealed that small investors sold a net $4.5 million of SpaceX shares on August 7. It was the first time retail investors had become net sellers since the IPO, after weeks of buying the stock.

The shift came after SpaceX shares initially surged 67% above the $135 IPO price before giving back those gains. Retail investors had bought roughly 30% of the IPO shares, according to reports, making their recent selling worth watching.

This leaves SpaceX stock on uncertain shores. Retail investors are starting to step back, while Morgan Stanley is building a much bigger valuation around the company’s AI ambitions.

Also Read: Michael Burry Shorts Palantir Stock as Phillip Raises PLTR Price Target to $215