Morgan Stanley highlights broader implications of SpaceX's $100 billion Louisiana project
SpaceX has announced a planned $100 billion Starbase complex in southern Louisiana that could become its largest launch facility. The decade-long development, expected to begin construction in 2027 with first launches by 2029, includes up to 10 launch pads and supporting infrastructure such as propellant production and employee housing. Morgan Stanley analyst Adam Jonas argues investors are underestimating the significance of this project. He maintains an Overweight rating on SpaceX stock (SPCX) with a $300 price target—implying over 117% upside from its August closing price of $137.95. The firm forecasts nearly 5,800 Starship launches annually by 2040 and believes the Louisiana site suggests SpaceX is planning for far more capacity than currently modeled. Morgan Stanley sees orbital computing as a key driver beyond consumer satellite broadband, potentially accounting for over 80% of future launches. The firm also anticipates significant cost reductions with Starship compared to Falcon 9, projecting launch costs below $150 per kilogram by 2040.
Topics: infrastructure expansion investment analysis Morgan Stanley SpaceX