Morgan Stanley seen as front-runner for SpaceX IPO, sources say

Core Viewpoint - Morgan Stanley is positioned as a leading contender for a significant role in SpaceX's upcoming initial public offering (IPO), largely due to its longstanding relationship with CEO Elon Musk [1][3]. Group 1: IPO Process - A selection process, referred to as a "bake-off," is currently ongoing, with Morgan Stanley, Goldman Sachs, and JPMorgan competing for underwriting roles [2]. - Although Morgan Stanley is viewed as a strong candidate for the "lead left" underwriting position, no final decisions have been made yet [3]. Group 2: Relationship with Elon Musk - Morgan Stanley's relationship with Musk spans over 15 years, enhancing its chances of leading the underwriting syndicate [3]. - The bank has previously advised Musk on significant transactions, including Tesla's IPO in 2010 and the financing for Musk's acquisition of Twitter in 2022 [5]. Group 3: IPO Timing and Market Conditions - SpaceX's potential IPO is expected to be complex, with a decision on lead banks anticipated by the end of the year, although the final syndicate will be confirmed later [4]. - The IPO's execution is contingent on market conditions, and there is a possibility that SpaceX may delay or cancel the offering [4]. Group 4: Future Plans - SpaceX's CFO indicated in a staff memo that the company is preparing for a public offering in 2026, but the timing and valuation remain uncertain [7].