Recent market reports indicate that SpaceX, one of the world’s largest private companies, is preparing for its potential initial public offering (IPO). Due to its long-standing relationship with Tesla (TSLA) CEO Elon Musk, Morgan Stanley (MS) has emerged as the leading candidate to spearhead this “epic” listing.
Currently, the underwriting arrangements for SpaceX’s IPO have not been finalized and are in a phase of intense competition among several top-tier investment banks. Sources familiar with the matter reveal that a handful of major institutions, including Goldman Sachs (GS) and JPMorgan Chase (JPM), are vying for key underwriting roles. Although Morgan Stanley is widely regarded as the frontrunner, it has not yet officially secured the critical “lead underwriter” position, leaving the final arrangements subject to change. The discussions are confidential, and all parties involved have declined to comment.
Morgan Stanley’s advantage stems from its close collaboration with Musk for at least fifteen years. The bank not only participated in Tesla’s 2010 IPO but also provided advisory services and led the financing for Musk’s acquisition of Twitter (now rebranded as X) in 2022. Recently, Anthony Armstrong, a Morgan Stanley banker who served on that deal, was appointed by Musk as the Chief Financial Officer of his artificial intelligence company, xAI. Furthermore, Jared Birchall, the founder and manager of Musk’s family office, Excession, is also a former Morgan Stanley banker who has long managed Musk’s personal assets and provided advice on Wall Street matters.
SpaceX Chief Financial Officer Bret Johnsen confirmed in a recent internal memo that the company is preparing for a potential public listing in 2026. However, he emphasized that the decision to go public, the specific timing, and the valuation remain highly uncertain and would depend on the company’s execution and market conditions. If successfully launched, this IPO is expected to raise substantial funds. Previous reports suggested the offering size could exceed $25 billion, potentially making it one of the largest listings globally. The raised capital is planned to increase the launch frequency of the next-generation Starship rocket, deploy AI data centers in space, and support projects like building “Moon Base Alpha.” SpaceX is currently a key contractor for NASA’s approximately $4 billion Artemis lunar program.
Initially known for rocket launches, SpaceX has grown its Starlink satellite internet business to become the world’s largest satellite operator, managing nearly 10,000 satellites and providing broadband services to individuals, governments, and enterprises. Starlink is now the company’s primary revenue driver and is actively expanding into the wireless communications sector. Sources indicate that as the company’s valuation continues to climb and the Starlink business develops rapidly, Musk’s stance on going public has shifted. This potential IPO might encompass both the rocket launch and satellite internet businesses, rather than a separate listing for Starlink alone.
Sending humans to Mars remains SpaceX’s long-term vision, and the cash flow generated by Starlink provides crucial support for developing the Starship system tasked with this mission. Although the market holds high expectations for SpaceX’s IPO plans, the final decision will ultimately depend on future market conditions and the company’s strategic choices.
