Morgan Stanley analyst Adam Jonas released an investor note on Monday, saying that the Starship rocket's next launch could be a catalyst for Space Exploration Technologies Corp.
Adam Jonas Touts Starship Flight 15 Mid-Air Catch
According to the note, cited by Yahoo Finance on Monday, Jonas touted Starship Flight Test 15, expected in early November, as well as Flight 16, which could take place toward year-end.
The analyst said that a mid-air rocket catch during any of the tests could prove to be a catalyst to drive valuation upward. Notably, Musk had shared that there could be a six-week timeline for the Starship Flight Test 15.
However, debt issuance is the "biggest risk" to the investment bank's model. "We do not want to downplay it," the analyst added in the note.
However, Jonas said that SpaceX not being able to raise capital has "much broader implications for the economy." Jonas then said that SpaceX's debt issuance could be modeled as $60 billion in 2027, $80 billion in 2028 and $90 billion in 2029.
Investors Ask SpaceX Questions Before Earnings
Ahead of its earnings call on Tuesday at market close, investors posted their questions for SpaceX ranging from updates on the production of the Starship Human Landing System (HLS) that will transport astronauts from lunar orbit to the lunar surface.
Other questions also asked SpaceX about a potential merger with Musk-led EV maker Tesla Inc.
Gary Black Touts $420/Share Deal
The comments come as Investor Gary Black of the Future Fund LLC predicted that SpaceX will offer Tesla somewhere around $420/share in a merger deal, which he termed "inevitable." However, the investor warned that such a merger may not be as fruitful for Tesla shareholders due to dilution.
Several prominent analysts, including Ross Gerber of Gerber Kawasaki Wealth Management and noted Tesla Bull Dan Ives, have expected a merger between the two enterprises following Tesla showcasing the Roadster high-performance EV equipped with SpaceX tech.
Cathie Wood Sees 1,100 TSLA Upside
Meanwhile, investor Cathie Wood-led ARK Invest published a report on Monday, predicting a nearly 1,100% upside for Tesla's stock by 2031, with the investment firm's base case scenario valuing TSLA shares at $4,400, while the bull case valuation sees TSLA at $5,000 by 2031.
The report also said that most of Tesla's enterprise value will be represented by the company's Robotaxi, of which ARK expects the company to deploy 8.1 million units of.
Price Action: SPCX shares were down 1.33% to $145.99 during pre-market trading on Tuesday, according to Benzinga Pro data.
