Key Points
- Morgan Stanley is the leading contender to manage SpaceX’s upcoming blockbuster IPO.
- The bank’s advantage comes from its deep, long-standing relationship with Elon Musk.
- Other major banks, like Goldman Sachs and JPMorgan, are also competing for a role.
- SpaceX is looking to raise over $25 billion, making it one of the largest IPOs ever.
Morgan Stanley is emerging as the top contender to lead SpaceX’s highly anticipated blockbuster IPO, thanks to the bank’s long and deep relationship with CEO Elon Musk. While a final decision hasn’t been made, sources say Morgan Stanley has a clear edge in the race to win the coveted “lead left” underwriting role.
The selection process is still underway, with other Wall Street giants such as Goldman Sachs and JPMorgan also vying for a piece of what could be one of the largest public offerings in history. SpaceX is reportedly looking to raise over $25 billion, a sum that will require a powerful syndicate of banks.
Morgan Stanley’s ties to Musk go back at least 15 years. The bank was a key player in Tesla’s 2010 IPO and later led the financing for Musk’s takeover of Twitter (now X).
The connection is so close that Musk recently hired one of his Morgan Stanley bankers to be the CFO of his new AI venture, xAI. Another former Morgan Stanley banker runs Musk’s personal family office.
The decision to take SpaceX public marks a significant shift for Musk, who has long preferred to keep the company private. However, the soaring success of its Starlink satellite internet service and the company’s growing valuation have reportedly changed his thinking.
The capital raised from an IPO would fund SpaceX’s ambitious plans, including its next-generation Starship rocket, a base on the moon, and even Musk’s ultimate dream of sending humans to Mars.
