With Tesla, Inc. (TSLA.US) CEO Musk having a close relationship, it is rumored that Morgan Stanley may lead SpaceX's epic IPO.

According to informed sources, Morgan Stanley (MS.US) is becoming one of the most competitive investment banks in SpaceX's potential initial public offering (IPO). Due to a long-standing close working relationship with the CEO of SpaceX and Tesla, Inc. (TSLA.US), Elon Musk, Morgan Stanley is considered to have a clear advantage in the selection process. Currently, the underwriting arrangements for SpaceX's IPO have not been finalized and are in a stage where several investment banks are competing for underwriting rights. Multiple sources have stated that a few large investment banks, including Goldman Sachs Group, Inc. (GS.US) and JPMorgan Chase (JPM.US), are participating in the competition to secure key underwriting roles. However, sources also emphasize that it is still uncertain whether Morgan Stanley will ultimately obtain the most core "lead underwriter" position, and discussions are still ongoing. Insiders point out that Musk's relationship with Morgan Stanley can be traced back at least 15 years, making the firm widely considered as one of the leading candidates to lead the underwriting syndicate. However, no investment bank has been formally selected yet, and the final arrangements remain variable. All related sources requested anonymity because the discussions are confidential. Morgan Stanley, Goldman Sachs Group, Inc., and JPMorgan Chase all declined to comment, and SpaceX did not respond to requests for comment. As one of the largest privately held companies in the world, SpaceX's IPO will have a highly complex trading structure if it proceeds. Although Musk has not yet chosen a lead bank, some individuals suggest that related decisions may be made by the end of this year, with a complete list of underwriters to follow. However, the IPO plans are still dependent on market conditions, and SpaceX does not rule out the possibility of postponing or abandoning the listing. The cooperation history between Morgan Stanley and Musk is deep. The firm participated in Tesla, Inc.'s IPO in 2010 and provided advisory services and led financing for Musk's acquisition of Twitter (now renamed X) in 2022. Recently, Musk appointed banker Anthony Armstrong, who served on the team at Morgan Stanley that assisted with the transaction, as the CFO of his artificial intelligence company xAI. This connection extends to Musk's family office in Austin, Texas. Former Morgan Stanley banker Jared Birchall, who had long provided Wall Street advisory services to Musk, created and manages Excession, responsible for overseeing Musk's personal assets. In an internal memo sent to employees last week, SpaceX CFO Bret Johnsen stated that the company is preparing for a public listing in 2026. In the email, he wrote that the decision of whether to go public, when to go public, and at what valuation level are highly uncertain, but if executed properly and market conditions align, an IPO could raise a substantial amount of capital for the company. There were previous reports that SpaceX plans to raise over $25 billion through its IPO, which, if successful, would be one of the largest public offerings globally. Considering SpaceX's long-standing status as a private company, this IPO plan has caught some market observers by surprise. Insiders suggest that with the company's increasing valuation and the rapid growth of its Starlink satellite internet business, Musk's attitude towards going public has changed. Initially known for its rocket launch business, SpaceX has now become the largest satellite operator globally with Starlink, operating nearly 10,000 satellites to provide broadband services to individual users, governments, and corporate clients. While there were speculations that Starlink might be spun off in a separate IPO, sources indicate that this IPO may encompass both the rocket and satellite internet businesses, with specific plans subject to adjustment. Johnsen mentioned in the internal memo that the funds raised through the IPO will be used to increase the launch frequency of the next-generation Starship rocket and deploy AI data centers in space to more deeply integrate into the global AI investment trend. Additionally, the funds will support the construction of the "Moon Base Alpha" that Musk has mentioned multiple times. SpaceX is currently one of the core contractors for NASA's Artemis lunar program, with a contract amount of approximately $4 billion. Sending humans and Siasun Robot&Automation to Mars has always been Musk's long-term vision for SpaceX, and the continuous cash flow brought by Starlink is providing crucial support for the development of the Starship Mars transport system. Currently, Starlink remains SpaceX's main source of revenue, and the company is also accelerating its expansion into the wireless communication sector, advancing new businesses like "Starlink Mobile".