Why the bot decided this
Morgan Stanley raised its SpaceX estimates, projecting positive cash flow by 2031—four years earlier than expected—and nearly $280 billion less borrowing. The report provides a concrete analyst-driven catalyst for SPCX.
The article
Morgan Stanley Analyst Says SPCX Will Be Cash Flow Positive by 2031, Four Years Earlier Than Expected—Cuts Borrowing Forecast by Nearly $280 Billion Morgan Stanley analyst Adam Jonas says Space Exploration Technologies Corp. (NASDAQ:SPCX) will achieve positive cash flow by 2031, reiterating bullish sentiment on the Elon Musk-led company. Morgan Stanley Cuts SpaceX Debt Issuance Target In a new investor note shared by influencer Sawyer Merritt on X on Tuesday, Jonas said that the investment bank had “nearly doubled” its revenue and earnings estimates for SpaceX. Jonas said the investment bank had upgraded SpaceX’s 2027 revenue estimate to $175 billion. Read Also: Jim Chanos Warns Elon Musk’s Space Data Center Math Could Be Way Off: ‘$5T Per GW…’ Jonas also said that Morgan Stanley was “pulling forward FCF break-even by four years (to 2031) and cutting ~$280bn from our projected debt issuance” for SpaceX. “At the time of our initiation, we had expected SPCX to be FCF negative until 2035,” Jonas said. “FY27 and FY28 revenues have been revised up 93% and 84% to $175B and $289B respectively,” he said in the note, adding that operating income has been “revised up 72%” to $119 billion. The investor also said SpaceX’s projected borrowing would fall to $390 billion through 2031. “At our new 2028 earnings (adj.) of $109B and the current market cap of $1.91T ($140 a share), SPCX would trade at 17.6x P/E, cheaper than the S&P500 2028 forward P/E of 17.7x (MSe), while growing earnings at a ~150% CAGR from 2026-2030e,” he outlined. Morgan Stanley’s Adam Jonas in new @SpaceX note: "Just 4 months since our initiation, we’ve nearly doubled our 2027 revenue (to $175B) and EBIT estimates, while pulling forward FCF break-even by four years (to 2031) and cutting ~$280bn from our projected debt issuance. On fiscal… — Sawyer Merritt (@SawyerMerritt) November 3, 2026 Notably, KeyBanc analyst Michael Leshock raised the company’s capex spending to $473 billion in 2027 after SpaceX’s Q3 earnings call. Leshock also said that the company would need $475 billion in additional capital through 2028. Bill Ackman’s $1 Trillion Prediction Investor Bill Ackman, the founder of Pershing Square Capital, said over the weekend that SpaceX and other tech companies could rival entire countries in borrowing for the AI data center buildout. “The hyperscalers that are building out a lot of this infrastructure have the financial resources, the creditworthiness in order to access the capital,” Ackman said. Price Action: SPCX shares were down 5.24% to $133.91 during overnight trading on Tuesday. Read Also: Elon Musk Sees $1 Trillion for SpaceX. His CFO’s Forecast Crashes the Party Check out more of Benzinga’s Future Of Mobility coverage by following this link. Photo courtesy: Thrive Studios ID via Shutterstock