Renowned short-seller Jim Chanos has highlighted a stark warning buried in Morgan Stanley’s new bullish research report on Space Exploration Technologies Corp. Despite assigning the company an “Overweight” rating, the underwriter disclosed that the space and AI giant faces a multi-year “Funding risk” totaling nearly $700 billion, with “no FCF-positive” cash flow projected until 2035. Chanos took to social media platform X to point out the sharp contradiction between the bank’s optimistic $300 price target and its underlying financial anxieties, calling the equity research disclosure “truly glorious.”

The $672 Billion Cash Hole

The snippet shared by Chanos reveals the steep cost of SpaceX’s physical infrastructure scaling. In the report, Morgan Stanley analysts wrote under a dedicated “Funding risk” section: “We forecast no FCF-positive year before 2035 and average external capital needs of roughly $84bn per year from 2027 to 2034.” Over those eight years, the required external capital totals approximately $672 billion. The underwriter explicitly warned that if debt markets cannot absorb these astronomical financing needs, SpaceX may be forced to “issue equity, reduce growth investment, or slow deployment.” High spending needs, including an estimated $300 billion in annual capex by 2031, make securing this external capital “one of the greatest risks to our forecasts,” noted Morgan Stanley.

High Risks vs. High Targets

Morgan Stanley’s base case relies on massive long-term Total Addressable Market (TAM) creation, forecasting SpaceX’s revenue to surge to $3.3 trillion by 2040. However, the immediate execution risks remain severe. The bank set an intentionally wide valuation range, spanning from a $75 bear case to a $600 bull case, balancing the company's unique technology against what is now exposed as a monumental capital hurdle.

Market Performance

Listed on June 12, 2026, SPCX shares were down 1.13% since their debut on the bourses. Despite its Monday inclusion in the Nasdaq 100 index, the stock had declined by 13.20% over the last five sessions. It closed 0.78% lower at $148.30 per share on Wednesday, and it was up 0.81% in overnight trading.

Space Exploration Technologies Corp. has doubled the prices for its Starlink Aviation plans, significantly increasing costs for in-flight Wi-Fi services while simultaneously raising hardware prices to $200,000 per business jet. The price hikes impact all three tiers of the Business Aviation service, with existing customers set to transition to the new rates in August.

The Aviation Regional 25 GB plan now costs $4,000 per month, up from $2,000, offering speeds up to 250 Mbps within one continental region. Additional data beyond the 25 GB cap is priced at $250 per GB. The Aviation Regional Unlimited plan is newly introduced at $12,500 per month, providing speeds up to 500 Mbps and no data limit within a single continental region. The Aviation Global Unlimited plan has increased to $20,000 per month from $10,000, offering unlimited data, speeds up to 1 Gbps, and worldwide coverage.

New Pricing Structure

The revised pricing structure for Starlink Aviation plans is detailed below:

Hardware Cost Increase

Alongside the subscription changes, SpaceX raised the price of its Starlink Aviation equipment from $145,000 to $200,000. The hardware is designed to deliver 1 Gbps speeds from takeoff to landing globally. The new hardware cost does not include the monthly service fees, and delivery times for the equipment remain a factor for potential buyers.

The pricing adjustments were disclosed via a post on X by influencer Sawyer Merritt on Tuesday. The move comes as SpaceX garners increased attention from financial institutions, with Morgan Stanley analyst Adam Jonas recently outlining a bull case of $600 per share for the company. SpaceX shares were up 1.14% to $151.16 during after-hours trading on Tuesday.