SPCX Stock Climbs Overnight: Analysts Tout SpaceX-Tesla ‘Physical AI’ Flywheel, Musk ‘Effectively’ Ships Grok 4.7 On Time

SpaceX provides Tesla with compute, connectivity and capital, while Tesla contributes robots, data, energy and manufacturing expertise.

• Morgan Stanley highlighted SpaceX and Tesla’s shared mission of “converting energy to intelligence” through their expanding “Physical AI” capabilities.
• Gene Munster said Musk “effectively shipped a product on time” with Grok 4.7, raising confidence in Grok 5’s late-2026 timeline.
• Grok 4.7 pushed SpaceXAI into the top four AI labs, while Musk touted its speed, lower cost and 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 for “effectively” delivering on time.

SPCX stock fell nearly 1% on Monday, logging its second straight loss.  

Morgan Stanley Maps SpaceX-Tesla AI Flywheel 

Morgan Stanley said SpaceX and Tesla  share technology, talent and infrastructure in a common mission of “converting energy to intelligence.” The firm believes the next decade of AI value creation will be decided by those capable of building, powering, connecting and instrumenting AI in the physical world.

“Tesla and SpaceX have each arguably assembled separate, but synergistically linked, physical AI capabilities and are working to gradually close the gap between them,” Morgan Stanley said. It identified links spanning advanced chips, AI hardware, energy storage, vehicles, solar, materials engineering, suppliers, connectivity, ownership, culture and talent.

Under Morgan Stanley’s framework, SpaceX provides Tesla with compute, connectivity and capital, while Tesla offers SpaceX robots, data, energy and manufacturing expertise. Morgan Stanley rates Tesla ‘Equalweight’ with a $400 price target, implying about 7% upside from current levels.

Musk ‘Effectively’ Beats The Clock On Grok 4.7 

Deepwater Asset Management’s Gene Munster framed Grok 4.7’s release as a rare timing win for Musk, who has frequently faced criticism over delayed products and aggressive deadlines. “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 predicted in August that Grok 4.7 would arrive on Sept.1. The model launched on Sept.21, which Munster called “essentially the same.” He said the release raises the odds that Grok 5 will arrive within Musk’s targeted late-2026 window.

Munster expects Grok 5 to be a “game changer,” particularly because Musk has said the model will incorporate “the entire corpus of SpaceX data,” pointing to information accumulated over a quarter-century. “Translation: Grok 5 will be the most useful engineering tool in history,” Munster said.

Grok 4.7 Cracks AI’s Top Tier

SpaceX’s AI arm, SpaceXAI, called Grok 4.7 as its most powerful model for coding and knowledge work, capable of handling longer tasks, checking its work more carefully and managing larger contexts.  The model 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%. It also led the cited models on an electrical-engineering benchmark with a 64% score.

Artificial Analysis said Grok 4.7 brought SpaceXAI into the top four AI labs and delivered a sharp improvement in agentic coding, 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. When its faster performance and lower cost are considered, he called the model “a great choice for your everyday workhorse.”

Grok 4.7 starts at $2 per million input tokens and $6 per million output tokens. It is available through Grok Build, the Grok API, Cursor and third-party coding platforms.

How Do Retail Traders Feel About SPCX?

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 said, “$SPCX its due for red tbh... tsla merger isn't a good thing its just more dilution and we have share unlock on Wednesday as well as the pushed back launch hopefully tjis weekend.. not everyday will be green.”

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Another user said, “$TSLA + $SPCX Is a vertically integrated company turning energy into intelligence!  Physical Ai is the end game and they are the only play in town that can scale!!! Think about that while you value earbuds at 4.9 trillion and think this duo is overpriced.”

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SPCX stock has declined 18% over the past three months. 

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