Morgan Stanley is increasingly viewed as the top contender to play a central role in SpaceX’s highly anticipated initial public offering, according to multiple sources familiar with the matter. The bank’s long-standing relationship with SpaceX founder and CEO Elon Musk is widely regarded as a decisive advantage as the company evaluates potential underwriting partners.
A formal selection process for the IPO, often referred to as a “bake-off,” is currently underway. Morgan Stanley is competing alongside other major Wall Street firms, including Goldman Sachs and JPMorgan. While no final decisions have been made, and there is no guarantee Morgan Stanley will secure the coveted lead-left underwriter position, it is broadly perceived as a leading candidate.
Musk’s connections to Morgan Stanley extend back more than a decade, reinforcing the bank’s position as a natural choice to coordinate the underwriting syndicate. Discussions remain confidential and fluid, and all involved parties have declined to comment publicly. SpaceX has not responded to requests for comment.
As one of the world’s most valuable private companies, SpaceX presents a uniquely complex IPO opportunity. Sources indicate that a decision on lead banks could be made before the end of the year, with the broader underwriting group finalized afterward. However, any offering remains dependent on market conditions, and SpaceX could still delay or abandon its IPO plans.
Morgan Stanley has advised Musk across several of his most high-profile transactions. The bank was part of the group that took Tesla public in 2010 and later led financing for Musk’s acquisition of Twitter, now known as X, in 2022. More recently, Musk recruited Anthony Armstrong, a Morgan Stanley banker involved in the Twitter deal, to serve as chief financial officer of his artificial intelligence company, xAI.
The relationship also extends through Musk’s family office. Jared Birchall, a former Morgan Stanley banker who has advised Musk for years, runs Excession, the firm managing Musk’s personal assets, further deepening institutional ties.
In an internal memo circulated last week, SpaceX Chief Financial Officer Bret Johnsen informed employees that the company is preparing for a potential public offering in 2026. While emphasizing uncertainty around timing, valuation, and execution, Johnsen noted that favorable market conditions could allow SpaceX to raise a substantial amount of capital. Previous reports have suggested the company may seek more than $25 billion, positioning the deal among the largest IPOs ever.
The move toward a public listing has surprised some observers, given Musk’s long-standing preference to keep SpaceX private. However, the company’s soaring valuation and the rapid growth of its Starlink satellite internet business appear to have driven a strategic reassessment.
Starlink has transformed SpaceX into the world’s largest satellite operator, with nearly 10,000 satellites delivering broadband services globally. While earlier speculation centered on a standalone Starlink IPO, current discussions suggest the offering could encompass both the launch and satellite businesses.
According to Johnsen, IPO proceeds would be used to accelerate development of the Starship rocket, expand space-based AI data centers, and support ambitious projects such as a planned lunar base. SpaceX is a key contractor for NASA’s Artemis program and continues to pursue Musk’s long-term vision of enabling human missions to Mars, with Starlink revenues playing a central role in funding those efforts.
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