Morgan Stanley: SpaceX's Cursor Acquisition Could Unlock $600/Share

Morgan Stanley analyst Adam Jonas has published a new note on SpaceX that puts the company's $60 billion acquisition of Cursor — the AI coding tool made by Anysphere — at the center of a potential 330% upside scenario. Jonas frames SpaceX not as a launch company or a connectivity provider, but as a full end-to-end platform, and argues that the AI segment is the most underappreciated part of the story.

What Jonas Is Actually Arguing

Jonas maintains an overweight rating on SpaceX with a base price target of $300 — a figure that already attributes more than half of SpaceX's total valuation to its artificial intelligence business. But the note goes further, laying out a bull case at $600 per share, and pointing to Cursor's evolution from what Jonas calls a 'harness' model (a tool that wraps existing AI) to a 'frontier' model (one that develops its own cutting-edge capabilities) as the bridge to that upside.

The framing matters. Jonas isn't just saying Cursor is a useful product acquisition. He's arguing it changes the ceiling on what SpaceX's AI segment can become — and that most investors are still pricing that segment at zero or below, citing high capital expenditure and uncertain near-term economics.

The Deal in Context

SpaceX agreed to acquire Anysphere — the company behind Cursor — in April 2026, in an all-stock transaction valued at $60 billion. According to reporting at the time, the deal included an option structure: SpaceX could either acquire the company outright for $60 billion or pay $10 billion for a strategic partnership. The full acquisition is expected to close in Q3 2026, making it the largest deal in AI developer tooling history.

Cursor, founded in 2022, will gain access to the Colossus supercomputer infrastructure through SpaceX's AI arm — formerly xAI, rebranded as SpaceXAI in July 2026 after SpaceX absorbed it in an all-stock transaction in February 2026. That infrastructure access is central to the 'frontier model' thesis: Cursor can't train its own competitive models without serious compute, and Colossus provides exactly that.

Why the 'End-to-End Platform' Label Is Significant

Jonas's characterization of SpaceX as a 'full end-to-end platform' is doing more analytical work than it might appear. The traditional SpaceX investment thesis rests on Starlink's recurring subscription revenue and the launch business. What Jonas is now describing is a third leg: an enterprise AI stack that spans developer tooling (Cursor), foundation models (Grok/SpaceXAI), and the compute layer (Colossus) — all sitting inside a single company that also controls its own global connectivity infrastructure.

That vertical integration argument is what separates the bull case from the base case. If Cursor remains a standalone coding assistant, it's a useful product. If it becomes the interface layer for an enterprise AI platform that runs on SpaceX's own models and SpaceX's own network, the addressable market expands considerably. Jonas is betting on the latter scenario — and arguing the market hasn't priced it in yet.

The deal is still pending close, and Jonas's $600 bull case is explicitly a scenario, not a forecast. But the note signals that at least one major institutional voice on Wall Street sees the Cursor acquisition as something more than a talent grab — it's a structural move that could redefine how SpaceX is valued. For our SpaceX coverage, this is a story worth watching closely as Q3 close approaches.

This report was curated by the BASENOR Editorial Desk from the sources listed above. Read our editorial standards or email editorial@basenor.com to report an error.