SpaceX finalizes $60 billion acquisition of coding platform Cursor

The merger, finalized less than two months after the initial June agreement, represents a strategic push by SpaceX to bolster its AI infrastructure. Under the terms disclosed in an SEC filing, Cursor’s outstanding equity was converted into 389,289,254 SpaceX Class A shares. The deal also accounts for restricted stock units and employee options, ensuring that Cursor’s workforce remains tied to the parent company’s performance. Cursor employees are now transitioning to the SpaceXAI team, where they will focus on advancing Grok and related software products.

Market reaction to the closing was muted, with SPCX shares opening at $143 and dipping to an intraday low of $135.53 before settling near $140. This performance stands in contrast to the June announcement of the merger, which had triggered a significant rally in the company’s valuation. Despite the recent volatility, analysts remain optimistic about the long-term integration of Cursor’s software into the broader SpaceX ecosystem. Morgan Stanley’s Adam Jonas maintains an overweight rating on the stock, citing the potential for Cursor’s annual recurring revenue to reach $33 billion by 2030 as a key driver for the firm’s $600 bull-case price target.