Elon Musk's pioneering aerospace company, Space X, has entered into early-stage discussions with a selection of leading Wall Street banks regarding a potential initial public offering (IPO). This move could position the listing as one of the most significant market debuts ever witnessed in financial history.
Wall Street Banks in the Frame for Senior Roles
According to reports from the Financial Times, Space X is currently evaluating several major financial institutions for senior advisory positions on the prospective IPO. The firms under consideration include Morgan Stanley, Goldman Sachs, JP Morgan Chase, and Bank of America. It is important to note that no definitive financial decisions have been finalised at this preliminary stage, and the company may well appoint additional advisers as the process evolves.
Neither Space X nor the banks involved have publicly confirmed these discussions or any concrete plans for an IPO, with all parties declining to comment on the matter. Sources familiar with the situation have indicated that any potential listing would remain heavily dependent on prevailing market conditions and could be subject to significant change. However, these preparatory steps represent the clearest indication to date that a Space X IPO is transitioning from mere speculation into active planning.
Morgan Stanley Seen as Leading Contender
Reports from last month suggested that Space X had already begun interviewing potential banking partners, with Morgan Stanley emerging as a frontrunner. This perception is largely due to the bank's established, long-standing relationship with Elon Musk, which could prove advantageous in securing a leading role in the historic flotation.
Space X's Staggering Valuation and Revenue Drivers
Space X is already recognised as one of the world's most valuable private companies. Recent secondary share transactions have reportedly valued the business at an astonishing $800 billion (approximately £591 billion), although earlier private deals in late 2024 suggested a valuation closer to $180 billion.
Analysts, including those at Reuters, have previously suggested that a Space X IPO could aim to raise over $25 billion, a figure that would cement its place among the largest listings of all time. A primary driver of intense investor interest is the explosive growth of Starlink, Space X's satellite broadband division. Starlink is now estimated to contribute around 70 per cent of the group's total revenues.
Operating a vast constellation of thousands of satellites in low Earth orbit, Starlink serves millions of customers worldwide. This provides a stable, recurring revenue stream that is typically highly attractive to public market investors. Alongside this core business, Space X continues to expand its launch operations, with its Falcon 9 rockets dominating the landscape of US orbital launches.
The Starship Programme and Regulatory Progress
The company is also aggressively advancing its Starship programme. This fully reusable heavy-lift rocket is designed to support future lunar missions and the deployment of large satellite constellations. While still in development, recent test flights have demonstrated tangible progress. Furthermore, regulatory authorities have approved an increased annual launch cadence from Space X's facilities in Texas, facilitating its ambitious expansion plans.
Uncertain Timing and Market Context
The precise timing for any potential IPO remains uncertain. Elon Musk has historically expressed scepticism about public markets, voicing concerns that short-term pressures from investors could conflict with the long-term, capital-intensive goals of technological innovation like that pursued by Space X. This tension is likely to surface if the company proceeds with a listing, given the enormous scale of continued investment required for its groundbreaking projects.
This development comes as financial markets anticipate a wave of major US flotations in the coming period. Other technology giants, particularly in the artificial intelligence sector such as OpenAI and Anthropic, are also reportedly laying the groundwork for their own potential IPOs, setting the stage for a potentially transformative year in public listings.
