NASA Nears Bulk Rocket-Purchase Deal for a $30 Billion Lunar Base

The U.S. space agency "NASA" is preparing to announce a bulk rocket launch purchase deal, aimed at supporting its program to build a permanent base on the surface of the Moon estimated to cost around $30 billion, according to MarketScreener citing Reuters and MT Newswires.

The agency is considering buying four or five types of rockets in a single round, according to program director Carlos Garcia-Galan, who noted an expected decline in the availability of SpaceX's "Falcon 9" rocket after 2028, prompting NASA to diversify its suppliers before reaching that stage.

In the same context, Adam Jonas, an analyst at Morgan Stanley, reiterated an "Overweight" rating and a $300 price target for SpaceX, noting that the market gives little value to the company's computing and chip manufacturing operations. Trading data showed an increase of 1.50% to $173.65.

This move comes at a time when space agencies and private companies are racing to return to the Moon, as NASA seeks to secure sustainable launch capabilities for its lunar program, while investors try to estimate the value of space assets within SpaceX beyond its known launch services.

What do these terms mean?

Permanent lunar base: A facility where astronauts reside and work on the surface of the Moon for long periods instead of short visits.

"Falcon 9" rocket: A reusable launch vehicle produced by SpaceX, used to transport satellites and payloads into orbit.

"Overweight" rating: An investment bank's recommendation that a stock will perform better than the market average in the coming period.

Price target: The price a financial analyst expects a stock to reach within a specified timeframe, used in buy and sell decisions.

Computing chips: Processors designed to perform artificial intelligence calculations, considered a valuable asset within technology companies.