Morgan Stanley is emerging as a leading contender for a top underwriting role in SpaceX’s long-anticipated initial public offering, leveraging its long-standing relationship with chief executive Elon Musk, according to people familiar with the matter cited by Reuters. The development places the Wall Street bank at the center of what could become one of the most complex and lucrative IPOs in global markets.
A formal selection process, known on Wall Street as a “bake-off,” is still underway, with Morgan Stanley competing against rivals including Goldman Sachs and JPMorgan, four sources told Reuters. While Morgan Stanley is widely viewed as the front-runner for the coveted “lead left” position, no final decision has been made and discussions remain fluid, the sources said. All three banks declined to comment, and SpaceX did not respond to requests for comment.
Reuters reported that Musk’s relationship with Morgan Stanley spans more than 15 years, giving the bank a perceived advantage in leading the underwriting syndicate. That relationship dates back to Tesla’s 2010 IPO, when Morgan Stanley was among the banks that took the electric carmaker public. The bank later played a central role in financing Musk’s 2022 acquisition of Twitter, now known as X.
The ties extend beyond deals. Musk recently appointed Anthony Armstrong, a Morgan Stanley banker who worked on the Twitter transaction, as chief financial officer of his artificial intelligence venture xAI. Another former Morgan Stanley banker, Jared Birchall, runs Excession, Musk’s Austin-based family office, according to previous Reuters reporting.
SpaceX, one of the world’s largest private companies, has not yet committed to going public, but momentum appears to be building. In a staff memo sent last week, SpaceX Chief Financial Officer Bret Johnsen said the company was preparing for a potential IPO in 2026, while cautioning that timing, valuation and even the decision to list remain uncertain. Reuters has previously reported that SpaceX is seeking to raise more than $25 billion in an offering that could come as soon as next year, a sum that would rank among the largest IPOs ever.
The prospect of a public listing has surprised some observers, given Musk’s long-stated preference to keep SpaceX private. However, people familiar with his thinking told Reuters that the company’s soaring valuation and the rapid growth of its Starlink satellite internet business have prompted a reassessment.
Starlink has transformed SpaceX from a dominant rocket launch provider into the world’s largest satellite operator, with nearly 10,000 satellites delivering broadband services globally. While there has been speculation in the past that Starlink could be spun off and listed separately, sources said the IPO could encompass both the satellite business and SpaceX’s launch operations, though plans remain subject to change.
According to Reuters, capital raised from an IPO would help fund an aggressive expansion agenda, including increasing the flight rate of the next-generation Starship rocket and deploying artificial intelligence data centers in space. Johnsen also referenced ambitions such as building a lunar base known as Moonbase Alpha, as SpaceX continues its role as a key contractor in NASA’s Artemis program.
Starlink remains SpaceX’s largest revenue generator, with the company now pushing into the wireless market through its Starlink Mobile service. As preparations continue and banks jockey for position, the eventual IPO, if it proceeds, is shaping up to be a defining moment for both SpaceX and Wall Street.
