- Morgan Stanley highlights a shared “Physical AI” flywheel between SpaceX and Tesla, focused on “converting energy to intelligence.”
- Elon Musk earned rare praise from Gene Munster for shipping Grok 4.7 on time, raising confidence in the late-2026 Grok 5 timeline.
- Grok 4.7’s launch pushed SpaceXAI into the top four AI labs, with strong gains in agentic coding performance.
Shares of SpaceX (SPCX) climbed 1% overnight heading into Tuesday as Morgan Stanley spotlighted the company’s growing “Physical AI” links with Tesla, while Grok 4.7’s launch earned Elon Musk rare praise. This follows a nearly 1% decline on Monday, which marked the stock’s second straight loss.
Morgan Stanley stated that SpaceX and Tesla share technology, talent, and infrastructure in a common mission of “converting energy to intelligence.” The firm argued that the next decade of AI value creation will be decided by those capable of building, powering, connecting, and instrumenting AI in the physical world. According to their analysis, SpaceX provides Tesla with compute, connectivity, and capital, while Tesla offers SpaceX robots, data, energy, and manufacturing expertise. Consequently, Morgan Stanley rates Tesla ‘Equalweight’ with a $400 price target.
Meanwhile, Deepwater Asset Management’s Gene Munster framed Grok 4.7’s release as a rare timing win for Musk. “For all the heat that Elon gets on product delays, it’s worth noting that he effectively shipped a product on time today,” Munster said. Musk had predicted in August that Grok 4.7 would arrive on Sept. 1; the model launched on Sept. 21, which Munster called “essentially the same.” This release raises the odds that Grok 5 will arrive within Musk’s targeted late-2026 window, a model Munster expects to be a “game changer” due to its incorporation of SpaceX data.
Grok 4.7 scored 46.3% on CursorBench 4.0, up from Grok 4.6’s 40.4% and ahead of GPT-5.6 Sol’s 41.7%. Artificial Analysis said the model brought SpaceXAI into the top four AI labs, although those gains required substantially higher token usage. Musk said on X that Grok 4.7 placed SpaceXAI third behind Anthropic and OpenAI for agentic coding, calling the model “a great choice for your everyday workhorse.”
On Stocktwits, retail sentiment for SPCX flipped to ‘bullish’ from ‘bearish’ levels a week ago amid a 74% jump in 24-hour message volumes. One user noted, “$SPCX its due for red tbh… tsla merger isn’t a good thing its just more dilution and we have share unlock on Wednesday.” Another countered, “$TSLA + $SPCX Is a vertically integrated company turning energy into intelligence!” SPCX stock has declined 18% over the past three months.
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