Cramer: SpaceX Investors Are Really Buying Musk
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- SpaceX had its blockbuster IPO on Friday, and shares surged almost 5% Tuesday, pushing its valuation above Amazon and briefly surpassing Microsoft at roughly $2.5 trillion.
- Jim Cramer argued on "Mad Money" that investors buying SpaceX are really buying "Elon Musk's brain," calling the enthusiasm a genuine "cult of Musk."
- SpaceX announced Tuesday it will acquire AI coding startup Cursor for $60 billion in stock, deepening its push into artificial intelligence and software development tools.
- Cramer noted SpaceX could see losses for many years and said conventional valuation methods miss the premium investors assign to Musk's ability to turn ambitious ideas into commercial opportunities.
- Musk recently projected SpaceX could generate $1 trillion in annual revenue by 2030, with Cramer citing Starlink, reusable rockets, and long-term data center ambitions as the underlying opportunity set.
- Cramer compared SpaceX's investor appeal to how previous generations viewed Berkshire Hathaway under Warren Buffett — a vehicle for exposure to a category-defining business leader.
Why it matters: SpaceX's $2.5 trillion valuation briefly surpassed Microsoft's despite ongoing losses, per Cramer — making Musk's personal brand a quantifiable market premium. The same-day $60 billion Cursor acquisition shows SpaceX deploying post-IPO capital toward AI infrastructure. Skeptics are already questioning whether future earnings can justify the current price.
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