Rep. Jared Moskowitz (D-Fla.) disclosed buying shares of Space Exploration Technologies Corp. (NASDAQ: SPCX) on June 12, the exact day the company went public with its initial public offering. The purchase, valued between $1,000 and $15,000, highlights a growing trend among lawmakers investing in the space sector despite political tensions with CEO Elon Musk. SpaceX stock traded between $149.34 and $176.52 on June 12, and currently trades at $110.96.

The disclosure raises questions about potential conflicts of interest, as Moskowitz has been vocal in his criticism of Musk. In 2023, Moskowitz described social media platform X as a "hate filled playground for Nazis and antisemites" following Musk’s acquisition. He also labeled the Department of Government Efficiency (DOGE), a government effort led by Musk, a "complete failure" in May 2025, citing a lack of transparency in decision-making. Moskowitz was the first Democrat to join the DOGE caucus before withdrawing his support.

Moskowitz is not alone in this investment activity. Several other members of Congress have recently disclosed buying SpaceX stock, including Reps. William Timmons (R-S.C.), John James (R-Mich.), John McGuire (R-Va.), Gil Cisneros (D-Calif.), and Daniel Meuser (R-Pa.), along with Sen. Lisa McClain (R-Mich.). McClain previously became a shareholder before the IPO when her husband bought a stake in xAI prior to its merger with SpaceX.

The committee assignments of some buyers add layers of scrutiny. Cisneros and McGuire serve on the House Armed Services Committee, which oversees federal contracts held by SpaceX, including those with the Pentagon, NASA, and Space Force. James serves on the House Energy and Commerce Committee, which has jurisdiction over the Federal Communications Commission, a key regulator for SpaceX’s operations. For both James and Timmons, this marked their first stock purchase in years.

In addition to SpaceX, Moskowitz’s latest disclosure revealed purchases in Applied Materials (NASDAQ: AMAT), HCA Healthcare (NYSE: HCA), Home Depot (NYSE: HD), Meta Platforms (NASDAQ: META), Monster Beverage (NASDAQ: MNST), and Microsoft Corporation (NASDAQ: MSFT). He also sold shares of S&P Global (NYSE: SPGI).

Congressional SpaceX Holdings

What the Numbers Show

The divergence between political rhetoric and financial behavior is notable. While Moskowitz publicly criticized Musk’s leadership and policies, he capitalized on the liquidity event of the SpaceX IPO. With the stock currently trading at $110.96, well below the June 12 high of $176.52, early investors like Moskowitz are holding positions that have declined in value since entry. This pattern suggests that legislative opposition to Musk’s personal or corporate conduct does not preclude financial participation in his ventures.

Morgan Stanley analyst Adam Jonas maintains a buy-equivalent rating and a $300 price target on Space Exploration Technologies Corp (NASDAQ: SPCX), warning that investor expectations of a decline to $100 imply zero or negative value for the company’s artificial intelligence business. Jonas argues the current sell-off is overdone, creating an attractive entry point as fundamentals remain largely unchanged despite bearish sentiment. This valuation disconnect directly impacts the performance outlook for single-stock leveraged exchange-traded funds tied to SpaceX.

The bank’s thesis assigns more than half of the $300 target to SpaceX’s AI operations, including Grok and Cursor. Jonas noted that many investors anticipate the stock falling toward $100 once insider lockups expire next month. At that level, the market would be assigning no value to the AI segment. The average analyst price target for SpaceX stands at $278, implying potential growth to a valuation exceeding $3.5 trillion over the next year, according to Bloomberg.

Leveraged ETF Implications

The divergence between Morgan Stanley’s bullish view and broader market skepticism creates significant volatility for single-stock leveraged ETFs. Funds such as the Leverage Shares 2X Long SpaceX Daily ETF (NYSE: SPCH), GraniteShares 2x Long SpaceX Daily ETF (NYSE: SPCG), and T-REX 2X Long SpaceX Daily Target ETF (NYSE: SPAX) seek to deliver twice the daily return of SpaceX shares. These products are highly sensitive to shifts in investor sentiment regarding the AI business.

Conversely, inverse products like the Leverage Shares 2X Short SPCX Daily ETF (NYSE: SSPC) and GraniteShares 2x Short SpaceX Daily ETF (NYSE: SNK) could continue outperforming if the stock drifts toward the $100 level. The outcome depends heavily on whether investors view AI as a cash-intensive burden with uncertain economics or a high-value growth driver.

Volatility Drives Trading Activity

Regardless of the directional bias, recent turbulence benefits ETF issuers through increased trading volumes. Single-stock leveraged ETFs function primarily as short-term trading instruments, deriving appeal from daily price movements rather than long-term trends. SpaceX demonstrated this volatility by soaring nearly 50% in its first three trading sessions before surrendering most gains over the following month. Such swings typically drive tighter spreads and greater usage of both leveraged long and inverse products, mirroring activity seen in ETFs linked to Tesla, Nvidia, and MicroStrategy.

Valuation Divergence

The core conflict lies in the valuation of SpaceX’s AI ambitions. While Morgan Stanley believes the market undervalues this segment, most investors contacted by the bank heavily discount it due to massive capital requirements and an uncertain path to profitability. This debate will likely keep SPCX, SPCG, SPCXX, SPCXD, and SPCS among the most closely watched single-stock ETFs as traders express either confidence in the bullish outlook or skepticism about premium valuations.