Jim Cramer says SpaceX investors aren’t buying earnings — they’re buying Elon Musk

CNBC’s Jim Cramer said Tuesday that investors flocking to SpaceX are betting on Elon Musk’s ability to create transformative businesses — not the company’s current earnings power.

“The stock is called SpaceX, but it might as well be called Elon Musk,” the “Mad Money” host said.

SpaceX has quickly become one of the world’s most valuable companies following its blockbuster IPO on Friday. Shares surged almost 5% Tuesday, pushing the rocket company’s valuation above several technology heavyweights, including Amazon, and briefly surpassing Microsoft. The rally has intensified questions about whether SpaceX’s roughly $2.5 trillion market value is justified.

Cramer argued, however, that conventional valuation methods miss what many investors are buying.

“There is no way this company, which could see losses for many years, deserves such a high valuation on its own. It only gets there because it’s run by Musk,” he said.

While Musk recently projected that SpaceX could generate $1 trillion in annual revenue by 2030, Cramer argued that the stock’s appeal extends far beyond any single forecast. Instead, he thinks investors are assigning value to Musk’s track record of building category-defining businesses and his ability to turn ambitious ideas into commercial opportunities.

“When you buy SpaceX here, you’re really buying Elon Musk’s brain,” Cramer said. “I think the cult of Musk is for real.”

To support that view, Cramer pointed to the breadth of SpaceX’s businesses and growth initiatives, including its Starlink satellite internet network, reusable rocket operations, and long-term data center ambitions. Adding to that opportunity set, SpaceX announced Tuesday that it will acquire AI coding startup Cursor for $60 billion in stock, deepening its push into artificial intelligence and software development tools. While the company currently operates at a loss and many of these opportunities have yet to fully materialize, Cramer said they could ultimately become significant drivers of future growth.

Cramer suggested that some investors view SpaceX similarly to how previous generations viewed Berkshire Hathaway under Warren Buffett — a way to gain exposure to a business leader they believe can continue creating value for decades.

While skeptics continue to question the stock’s valuation, Cramer noted that betting against the rally has been costly so far.

“While you’re sitting here trying to justify SpaceX’s valuation, the buyers are relentlessly pushing it up, and I bet they keep going,” he said.