SpaceX, the private space exploration company founded by Elon Musk, is reportedly preparing for one of the biggest initial public offerings (IPO) in history. Sources familiar with the matter say Morgan Stanley is emerging as the front-runner to lead the IPO, thanks to its long-standing relationship with Musk. While nothing has been officially confirmed, this potential deal is generating significant attention in financial circles.
Close Ties Give Morgan Stanley an Edge
Morgan Stanley’s connection to Elon Musk goes back more than 15 years, making it one of the banks Musk trusts most. This long-term relationship is seen as a major advantage in the selection process for the IPO. Currently, SpaceX is holding a “bake-off” among a small group of leading banks, including Morgan Stanley, Goldman Sachs, and JPMorgan, to determine which bank will take the coveted “lead left” position in underwriting the IPO.
The final decision has not been made yet. Sources emphasize that while Morgan Stanley is a strong contender, there is no guarantee that it will secure the leading role. The discussions between the banks and SpaceX remain confidential, and all parties involved have declined to comment publicly.
Morgan Stanley has previously worked with Musk on some of his most high-profile ventures. The bank was part of the team that took Tesla public in 2010 and later led the financing for Musk’s 2022 acquisition of Twitter, now known as X. Musk has also appointed former Morgan Stanley bankers to key roles in his businesses, including his artificial intelligence company xAI and his family office, showing a consistent reliance on the bank’s expertise.
SpaceX IPO Plans and Financial Goals
SpaceX’s potential IPO is expected to be highly complex due to the company’s size and diverse business interests. According to an internal memo sent by SpaceX’s chief financial officer, the company is actively preparing for a public offering in 2026. The memo notes that while the timing, valuation, and execution of the IPO remain uncertain, a successful offering could raise a substantial amount of capital for the company.
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Reports suggest SpaceX may aim to raise more than $25 billion, which would make this IPO one of the largest globally. The company’s decision to go public surprised some industry observers because SpaceX has traditionally remained private, despite its growing valuation and the rapid expansion of its Starlink satellite internet service.
The potential IPO could include both SpaceX’s rocket launch business and Starlink, its satellite-based broadband internet network. Starlink has become the company’s main revenue generator, operating nearly 10,000 satellites and expanding into wireless services under the new Starlink Mobile trademark.
Capital Use and Strategic Moves
The funds raised through the IPO would be used for ambitious projects. SpaceX plans to increase the flight rate of its next-generation Starship rocket, a key component of Musk’s long-term vision for space exploration. The company also intends to deploy AI data centers in space, a move that complements Starlink and taps into the growing interest in artificial intelligence technologies.
Additionally, SpaceX has plans for a lunar base called “Moonbase Alpha” and is a key contractor for NASA’s Artemis moon program, which involves landing astronauts on the lunar surface using Starship rockets. Revenues from Starlink are helping fund the development of Starship, which is also envisioned as a vehicle for future Mars missions.
Despite these ambitious goals, sources caution that the IPO is still dependent on market conditions, and SpaceX may adjust its plans or delay the offering if circumstances change. While Morgan Stanley appears to have an edge in securing the lead role, the final underwriting syndicate has yet to be finalized.
The news of SpaceX moving toward a public offering underscores the growing scale of the company’s operations and its increasing focus on generating capital for both space exploration and technological advancements.
