SpaceX shares rose nearly 8 per cent on Monday to their highest level since mid-June, lifting Elon Musk’s wealth back above the $1tn mark.

The rally followed a note from Morgan Stanley analysts on Sunday, who described SpaceX shares as “cheap” at current levels and highlighted potential catalysts including future artificial intelligence product launches, progress on its Starship programme and additional neocloud contracts.

The analysts recommended buying the stock and set a $300 price target, about 75 per cent above Monday’s closing price of $171.09.

The gains came after SpaceX carried out several major missions late last week, including a crewed NASA flight to the International Space Station and a separate launch that placed Google’s AI chips into orbit.

Starship is SpaceX’s next-generation spacecraft and the largest rocket ever built. It is designed to be fully reusable, with both its upper stage and booster capable of landing safely back on Earth.

The system is expected to significantly expand SpaceX’s business by enabling the company to deploy Starlink satellites while also carrying cargo and crew for other companies and government agencies.

Morgan Stanley analysts said a potential attempt to catch the Starship upper-stage ship during its next test flight could become “the biggest positive catalyst since the IPO.”

In previous test flights, the Starship upper stage has splashed down in the ocean but has yet to demonstrate that it can be recovered and reused.