Elon Musk’s SpaceX Could Pay Off for Investors Before Tesla Ever Did, Says Jim Cramer — Top Investment Bank Sees Over 37% Upside for SPCX Investors (UPDATED)

Editor’s Note: The story has been updated with additional details, latest price action and a new headline. TV Host Jim Cramer has praised Elon Musk‘s commercial spaceflight company Space Exploration Technologies Corp. (NASDAQ:SPCX), saying that the enterprise could benefit investors even before Tesla Inc. (NASDAQ:TSLA) did. SpaceX Is a ‘Real Company’ With a ‘Real Business’ On Wednesday, Cramer hailed SpaceX on the “Mad Money” show on CNBC, saying that Musk had made some “very smart moves” by renting out excess AI compute with NVIDIA Corp (NASDAQ:NVDA) chips that Cramer said Musk bought at “extortionate prices,” while also pointing to the compute deals with Anthropic and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG). Read Also: Jeff Bezos Just Put Blue Origin's IPO on the Radar After $10 Billion Funding Round: 'It Probably Makes Sense' “I’ve been adamant this [SpaceX] is a real company with real numbers and a real business, many businesses even,” Cramer said, adding that he had defended the company against criticism that it was overvalued. Goldman Sachs Price Target Cramer then pointed to Goldman Sachs Group Inc. (NYSE:GS) raising its price target for SpaceX to $230, which “ratified” the previous $220 price target. “When you’re dealing with real speculative games, you almost never see price target bumps until after the hot money’s over on the price target. By then, it’s too late anyway,” Cramer said. Goldman Sachs’ new price target represents more than 37% upside from SPCX stock’s last closing price. However, Cramer then said that he understood the investment bank’s price target bump, adding that SpaceX was making “so much money renting out compute” that it was planning to borrow $40 billion to buy more NVIDIA chips. “SpaceX could end up being NVIDIA’s largest client at this pace. That’s fantastic news for both sides,” he said. The TV Host then said that it was “becoming more and more likely that SpaceX could come to fruition a lot earlier than Tesla ever did.” Morgan Stanley Bullish on SpaceX Notably, Morgan Stanley (NYSE:MS) analyst Adam Jonas said that the company presented a “unique” investment opportunity with its wide array of “interlinked” businesses and that it was “unusually cheap” when investors factored in the opportunities in chipmaking and power. Jonas reiterated an “overweight” rating for SpaceX and issued a price target of $300 for SpaceX shares, illustrating bullish sentiment on the stock. Price Action: SPCX shares were down 0.70% to $166.43 during Thursday premarket trading. Read Also: Starlink Ready for India Launch, So What’s Holding It Back? Elon Musk Blames 'Certain Oligarchs': ‘You Can Guess Who They Are’ Check out more of Benzinga’s Future Of Mobility coverage by following this link. Photo courtesy: Samuel Boivin / Shutterstock.com