Bank emerges as front-runner in early talks
Morgan Stanley is emerging as a leading contender for a key role in a potential initial public offering of SpaceX, according to people familiar with the matter. The U.S. bank is seen as having an edge due to its long-standing relationship with SpaceX founder and CEO Elon Musk, although no final decision has been made.
A formal selection process is still ongoing, with several major investment banks competing for underwriting roles. Goldman Sachs and JPMorgan are also involved in the discussions, which remain fluid and confidential. Sources cautioned that there is no certainty Morgan Stanley will secure the coveted lead position.
Long-standing ties with Elon Musk
Morgan Stanley’s relationship with Musk stretches back more than a decade. The bank was part of the group that took Tesla public in 2010 and later advised Musk on his 2022 acquisition of Twitter, now known as X. More recently, Musk appointed Anthony Armstrong, a banker who worked on the Twitter deal at Morgan Stanley, as chief financial officer of his artificial intelligence venture xAI.
The ties extend further through Musk’s family office. Jared Birchall, another former Morgan Stanley banker, manages Musk’s personal assets through Excession and has advised him on multiple major financial transactions over the years.
IPO plans point to 2026 timeline
In an internal memo sent to staff last week, SpaceX Chief Financial Officer Bret Johnsen said the company is preparing for a possible public offering in 2026. He stressed that the timing, valuation and execution remain uncertain and dependent on market conditions.
SpaceX is one of the world’s largest private companies, and an IPO could raise more than $25 billion, according to earlier reports. Such a deal would rank among the largest public listings ever. While Musk has historically preferred to keep SpaceX private, the company’s growing valuation and the success of its Starlink satellite internet business have driven renewed consideration of a public offering.
Starlink and AI increase capital needs
SpaceX has expanded far beyond its core rocket launch business. Through Starlink, it has become the world’s largest satellite operator, with nearly 10,000 satellites providing broadband services to consumers, governments and businesses worldwide. Although Starlink had previously been viewed as a potential standalone listing, current discussions suggest the IPO could include both businesses.
According to the internal memo, capital raised from a public offering would be used to increase the flight rate of the Starship rocket, expand the Starlink network and develop artificial intelligence data centers in space. The company also plans to advance long-term projects tied to lunar exploration and future missions to Mars.
