SpaceX Stock Climbs on $40 Billion GPU Financing and Analyst Target Hike

Shares of Space Exploration Technologies Corp. (SPCX) rose 1.1% to $149.12 in pre-open trading Monday, driven by a major financing announcement from CEO Elon Musk and a fresh price target upgrade from Wall Street.

The gains came despite a significant number of shares becoming eligible for sale following the expiration of a post-IPO lockup period.

Key Catalysts

Late Sunday, CEO Elon Musk confirmed that SpaceX had secured a $40 billion debt financing arrangement to purchase graphics processing units (GPUs). Musk stated the callable debt is structured around GPU deliveries expected in the first and second quarters of 2027. He attributed the successful financing to the company's "investment-grade credit profile," which is supported by recurring revenue from its Starlink and rocket launch businesses.

Adding to the positive momentum, Bernstein SocGen raised its price target on SpaceX to $268 from $248 while maintaining an Outperform rating. The firm cited an increased forecast for the company's terrestrial compute capacity, now projecting 13 gigawatts by the end of 2027. This follows recent target increases from BofA Securities, Pivotal Research, and TD Cowen, which pointed to the company's strong third-quarter results.

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Market Reaction and Headwinds

The upward move in the stock is being tempered by a notable supply event. A lockup period for up to 328.4 million shares expired on Saturday, October 24, making them eligible for trading for the first time on Monday. Such events can create selling pressure as early investors and insiders get the opportunity to liquidate holdings.

However, the positive catalysts appear to be outweighing the potential supply overhang for now. The stock is also trading in a supportive broader market environment, with major U.S. indices posting gains. A secondary tailwind comes from a Barclays upgrade of Tesla (TSLA) to Overweight, which partly cited an expected combination with SPCX.