63% Investors Say SpaceX Could Become More Valuable Than Tesla (TSLA) and Represents More Attractive Investment - Morgan Stanley's Survey

October 20, 2021 9:23 AM EDT
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Morgan Stanley analyst Adam Jonas shared the results of the bank’s client survey and industry experts, focused on two simple questions.

Question 1: Which do you think is a more attractive investment from here: Tesla or SpaceX?

A. TSLA B. SpaceX

Question 2: Which do you think has the potential to be a more valuable company over the long term: Tesla or SpaceX?

A. TSLA B. SpaceX

In both cases, 63% of investors voted for SpaceX. Jonas weighed in to discuss survey results.

“It's been 4 years since we published Space: Investment Implications of the Final Frontier. At that time, we really struggled to get any of our clients interested in the theme. Fast forward to 2021 and there is growing interest in Space with our equity investment clients... particularly around SpaceX. Investors are beginning to appreciate the potentially wide-ranging use- cases for SpaceX's reusable launch architecture across communications, transportation, earth observation and other space-related domains,” Jonas said in a client note.

“SpaceX is clearly seen as the 'Apex Player' in the global space business... to the point where it is now one of the most valuable private companies in the world. While our client distribution list may not be representative of the entire market, the majority of our clients (by survey and client discussions) believe SpaceX could ultimately command a higher valuation and significance than even Tesla. Tesla is the world's most valuable industrial/manufacturing company today. In our view, having access to nearly unlimited sources of capital will be an extremely important part of the narrative around building the space economy.”



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