Morgan Stanley Emerges as Front-Runner for SpaceX’s Massive 2026 IPO

• SpaceX is advancing preparations for a potential 2026 IPO aiming to raise more than $25 billion, driven by the need to fund Starship development, space-based AI data centers, and a lunar base under its $4 billion NASA Artemis contract.
• Starlink has emerged as SpaceX’s primary revenue driver and the world’s largest satellite operator with nearly 10,000 satellites, influencing the shift toward a full-company public offering that includes both satellite and rocket operations.
• Morgan Stanley (MS) is a leading contender for the lead underwriting role due to its 15-year relationship with Elon Musk, alongside competitors Goldman Sachs (GS) and JPMorgan (JPM), with bank selections potentially concluding before year-end.

SpaceX is preparing for a potential initial public offering in 2026 that could raise more than $25 billion, marking one of the largest public listings globally. The company’s plans center on funding ambitious initiatives, including accelerating the flight rate of its next-generation Starship rocket, deploying AI data centers in space to complement its broadband operations, and establishing a lunar base referred to as Moonbase Alpha. These efforts align with SpaceX’s role as a key contractor in NASA’s Artemis program, supported by a $4 billion contract for lunar astronaut landings using Starship.

The decision reflects a strategic shift driven by the expansion of Starlink, now the company’s primary revenue source and the world’s largest satellite operator with nearly 10,000 satellites providing broadband to consumers, governments, and enterprises. Starlink’s growth includes entry into the wireless market through Starlink Mobile, trademarked in October, while prior considerations of a separate Starlink listing have evolved toward an IPO encompassing both the satellite and rocket businesses, though details remain flexible.

Reuters reports that underwriting discussions are underway, with a competitive selection process involving major banks. Morgan Stanley (MS) is viewed as a strong contender for a leading role – potentially the lead‑left position – given its longstanding relationship with CEO Elon Musk that spans more than 15 years. These ties include Morgan Stanley’s involvement in Tesla’s 2010 public offering alongside Goldman Sachs (GS), JPMorgan (JPM), and others, as well as advising on Musk’s 2022 acquisition of Twitter, now X. Former Morgan Stanley bankers have also joined Musk’s ventures, including one serving as CFO of xAI and another managing his family office through Excession.

SpaceX Chief Financial Officer Bret Johnsen communicated these preparations in an internal memo, emphasizing that execution and market conditions will determine outcomes, with the offering potentially delayed or canceled. A lead bank decision may occur before year-end, followed by finalizing the syndicate. The IPO’s complexity stems from SpaceX’s status as one of the largest private companies, with revenues increasingly tied to Starlink’s success and Starship’s development for lunar and Mars missions.

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