SpaceX stock tops IPO price on $100 billion Louisiana expansion

SpaceX stock climbed above its IPO price Wednesday, closing at $139.63, up 1.2 percent, on a $100 billion Louisiana expansion.

"We're preparing to build a spaceport that, until now, has only existed in science fiction," Elon Musk, founder and CEO of SpaceX, said at the announcement event in Abbeville, Louisiana.

The 125,000-acre site on Pecan Island in Vermilion Parish, named Starbase Louisiana, will become the company's fourth U.S. launch location and its second Starbase campus. The complex will include five launch complexes with two pads each, propellant production, power generation, deep-water shipping capabilities, vehicle processing facilities, and an airport. Construction begins in 2027, with the first Starship launch targeted for 2029.

Morgan Stanley's $300 price target implies roughly 115 percent upside from Wednesday's close. The stock's recovery above its $135 IPO price reflects renewed investor confidence in SpaceX's Starship program and its ambitions to deploy up to 1 million AI data-processing satellites in orbit.

The Louisiana project is expected to create more than 3,000 direct jobs paying an average annual salary of $92,600, or 192 percent above the Vermilion Parish average. Musk said the company could eventually bring "probably 10,000 really exciting jobs" to the state. Louisiana Economic Development estimates the project will generate more than 8,100 indirect jobs, for more than 11,100 new job opportunities in the Acadiana region.

SpaceX President Gwynne Shotwell said the "self-sustaining" spaceport will produce its own methane propellant and power. The site's location offers access to polar orbits with only a short traverse over Mexico, which is critical for Musk's plan to build a massive constellation of orbital data centers. The company also plans to partner with state and federal agencies on coastal restoration, including Gulf shoreline protection breakwaters to slow erosion.

The project cleared a legal hurdle in June when Louisiana settled a decade-long lawsuit against ExxonMobil over wetland damage. The state reached an agreement with Exxon to settle the case, clearing the way for SpaceX to develop the 18-mile coastal strip.

SpaceX has entered into a Payment in Lieu of Taxes agreement with local taxing bodies, paying $25 million annually for 25 years plus a $20 million upfront payment, expected to generate more than $820 million in direct local payments. The company also committed a $25 million charitable donation to the Community Foundation of Acadiana.

The stock's move above its IPO price comes as SpaceX expands its southern U.S. footprint, having built Colossus AI data centers in Tennessee and Mississippi and planning a chip plant in central Texas. The company is also building two Starship pads in Florida next to its Falcon 9 launch facilities.

Pecan Island is a protected habitat for dozens of migratory bird species, and environmental groups have raised concerns about launch impacts. Shotwell said SpaceX will help fund environmental "protection, restoration, and stewardship" while the launch site is constructed, and the company has engaged the Louisiana Department of Wildlife and Fisheries to address potential impacts.

Investors will watch for further details on the Louisiana project's environmental review and regulatory approvals. The first launch in 2029 will test whether SpaceX can execute on the ambitious cadence of thousands of Starship flights per year that Shotwell outlined.

This article is for informational purposes only and does not constitute investment advice.