SpaceX (SPCX) has another sales job to do with investors, prominent Wall Street analyst Adam Jonas said.

Earlier this week, SpaceXAI launched a beta version of Grok Bot, an always-on assistant that orchestrates agents and tools inside a virtual computer. It's now available for SuperGrok Heavy, Cursor Ultra, and Cursor Teams Premium subscribers on desktop and iOS.

Morgan Stanley's Jonas made two key points on this development in a new note out on Thursday.

First, "The key to SpaceXAI being valued as more than a neocloud is evidence it can ship value-added products that compete with frontier model offerings," Jonas said. "Grok Bot is one step in building an enterprise platform that combines intelligence, real-time data, low-cost and scalable compute, and global connectivity into a wide suite of enterprise tools that leverage these unique advantages."

Second, Jonas added, "Most investors still value SpaceXAI as a modestly successful neocloud, with near zero credit for productizing its compute internally. … The next few weeks of AI model development are potentially key for closing that gap: expect Cursor progress shared post-acquisition close (expected within weeks), Grok 4.6 this week, 4.7 later this month, and Grok 5 before year end."

Jonas has a $300 price target on SpaceX, more than double the current levels.

It has been a volatile few weeks for SpaceX investors.

A total of 911.5 million shares of SpaceX held by employees and early investors became eligible to trade last Thursday, two days after the company's first earnings report as a public company. That equated to about 43% more than the 638.9 million shares issued at IPO.

Investors shrugged it all off, with the stock up 16% late last week. Shares have rallied from an intraday low of $104.83 on Aug. 3 up to a close of $146.15 on Aug. 12.

On Monday, the stock climbed past its $135 initial public offering price for the first time in about a month. Shares have closed above this price in three of the last four trading sessions, per Yahoo Finance AlphaSpace data.

Lost somewhat in the focus on the lockup expiry and the rally from the lows have been the puts and takes to SpaceX's second quarter and how the performance may look similar in the third quarter.

Total capital expenditures for SpaceX in the second quarter were $18.4 billion, well above analyst estimates of around $6 billion. Commentary by executives indicated that third and fourth quarter capex could each remain at similar levels, implying full-year capex of about $65 billion. Wall Street was modeling for $50 billion in capital expenditures this year.

The company didn't share specific 2026 guidance.

Musk has a lot of convincing to do in the months ahead. From Jonas's callout on Grok to others on the Street clamoring for more clarity on rocket launches and a merger with Tesla, SpaceX shares will undergo a bumpy journey on the road to long-term gains.

"I think the jump [in the stock] over at the end of last week was a little bit surprising," Sevens Report Research founder Tom Essaye said on Yahoo Finance's Opening Bid. "In the end, betting against Elon Musk has been a fool's errand time and time again. And I think that's probably true this time. So yes, I am a long-term bull on SpaceX. However, you better buckle up for some interim volatility, because we know this name is going to be wild." 

Brian Sozzi is Yahoo Finance's Executive Editor, host of the 'Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email [email protected].

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