SPCX Stock Ends Higher On Starship Fuel Plans, Analyst Optimism And TSMC Talks

• The newly proposed line is slated to ensure the supply of methane for Starship flights from the pad. 
• Morgan Stanley’s Adam Jonas recently reiterated an overweight rating on SPCX and a $300 price target, calling the shares “cheap and getting cheaper.”
• CEO Elon Musk also confirmed over the weekend that talks with Taiwan Semiconductor Manufacturing are continuing on a possible chip plant that would supply Tesla, SpaceX, and xAI.

Shares of SpaceX (SPCX) closed 8% higher on Monday after a report that the company has proposed a natural gas pipeline in Florida to fuel Starship launches from Cape Canaveral as it tries for a much higher flight rate for the rocket slated to replace Falcon 9 as the new workhorse.

The stock opened marginally higher before climbing steadily and closing at $171.09, spurred in part by positive analyst commentary, in addition to multiple launches last week and Musk’s confirmation of talks with Taiwan Semiconductor Manufacturing for a plant that supplies chips to his many companies, including the rocket manufacturer and its AI segment.

A Line To The Starship Pad

In a Sept. 24 filing with the Florida Public Service Commission, a SpaceX subsidiary, Coastal Connect Services LLC, asked to build a 32.4-mile, 16-inch pipeline in Brevard County, where Cape Canaveral sits, Bloomberg reported. The line would tie into Florida Gas Transmission, a system run by Energy Transfer, and serve SpaceX facilities along the Space Coast.

The point is methane. Starship burns liquid methane, and SpaceX liquefies natural gas to make that fuel. A dedicated line would replace trucked deliveries with a steady supply as launch operations expand. The company would still have to build the equipment that turns pipeline gas into rocket propellant.

Starship is the vehicle SpaceX is counting on for a higher launch cadence, a larger Starlink constellation, and eventual deep-space flights.

The Florida plan follows a separate project in Texas. Reuters reported in June that a SpaceX affiliate wants to build an eight-mile line, called Starpipe, to the company’s Starbase site, aimed at service by late January.

SPCX Optimism Was Already Underway

Monday’s gain was not only about the pipeline. Morgan Stanley’s Adam Jonas recently reiterated an overweight rating on SPCX and a $300 price target, calling the shares “cheap and getting cheaper,” with Starship and the AI business as the upside. That target implies roughly 89% upside from Friday’s close.

CEO Elon Musk also confirmed over the weekend that talks with Taiwan Semiconductor Manufacturing are continuing on a possible chip plant that would supply Tesla, SpaceX, and xAI. He described the discussions as preliminary.

The stock had already jumped about 7% on Friday after a busy launch stretch of about three missions in 13 hours on the heels of a Starship flight that deployed Starlink satellites in orbit in late September.

How Did SPCX Retail Traders React?

On Stocktwits, retail sentiment around SPCX stock was extremely bullish at the time of writing, while message volume stayed at high levels.

“With Starship Flight 15 on the radar, this setup could keep call demand and implied volatility strong. We might be in for more action,” a Stocktwits user wrote.

Another user, however, highlighted the company’s loss-making despite its high valuation.

The company's shares closed Monday still well below their 52-week high of $225.64, set in June.

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