SpaceX may cut Robinhood and SoFi from IPO as E*Trade leads talks

Morgan Stanley’s E*Trade is in talks to take the lead in selling SpaceX IPO shares to everyday US investors, giving the brokerage an early advantage over Robinhood and SoFi in one of the most closely watched listings of 2026.

Reuters reported Monday that SpaceX is considering routing a meaningful share of its smaller ticket retail allocation through E*Trade, though the talks are still private and not final. Fidelity is also seeking a role in the distribution.

The retail fight matters because SpaceX is discussing an unusually large allocation for individuals. Reuters reported last week that Elon Musk is considering reserving up to 30% of the IPO for retail investors, roughly three times the level typically seen in major US listings. Even so, a significant portion of that pool would still likely go to wealthy private banking clients, leaving the smaller self-directed slice as the prize brokerages are competing to capture.

A lead role would be a notable win for E*Trade as Morgan Stanley leans on its in-house platform to deepen its retail footprint. Morgan Stanley bought E*Trade for about $13 billion in 2020, and Reuters said the bank is expected to use the same playbook here by keeping more of the retail allocation within its own network. That would leave Robinhood and SoFi, both of which have become common distribution channels in splashy IPOs, at risk of being cut out or given only a limited role.

SpaceX has discussed a 2026 IPO that could raise as much as $75 billion and value the company at around $1.75 trillion. If it proceeds, the listing would rank among the largest public offerings ever and could test whether Elon Musk’s retail-driven approach reshapes participation in blockbuster IPOs.