Morgan Stanley sees SpaceX at $300/share, with a $600 bull case. But what caught my attention isn't the price target. It's what's increasingly behind the valuation.

SpaceX's planned $60 billion acquisition of Cursor would bring one of the fastest-growing AI coding platforms into the same ecosystem as SpaceX, Starlink, xAI/Grok, massive AI compute infrastructure, Cursor, and eventually, orbital data centers. Morgan Stanley reportedly sees Cursor reaching roughly $8 billion in annual recurring revenue by the end of 2026 and ~$33 billion by 2030.

That starts changing the SpaceX investment thesis. You're no longer just betting on rockets, Starlink and Starship. You're potentially buying into an increasingly vertically integrated space communications, AI, and compute platform.

Then there's the bonus optionality. Cathie Wood's ARK is now reportedly predicting that the long-speculated Tesla-SpaceX merger could happen within the next few months. If that actually happens, add Tesla's energy storage, autonomous vehicles, manufacturing and Optimus robotics to the equation.

Obviously, Morgan Stanley's $600 scenario requires a LOT to go right, and ARK's merger timeline could easily be wrong. But I'm starting to think the biggest mistake in valuing SpaceX may be continuing to value it primarily as a space company.

At $300–$600, is Morgan Stanley getting ahead of itself or seeing what SpaceX is becoming before everyone else does?