TLDR
- Elon Musk discusses giving retail investors up to 30% of SpaceX’s IPO – much higher than the usual 5-10%.
- SpaceX could be valued at around $1.75 trillion, which could be one of the largest IPOs ever
- Bank of America will target high-net-worth American individuals; Morgan Stanley will deal via E*Trade with small retail buyers
- UBS and Citi will handle international retail and institutional distribution
- SpaceX is expected to file its IPO prospectus with regulators as early as this week or next week
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Elon Musk plans to give everyday investors a much bigger seat at the table in SpaceX’s IPO. Reports indicate that he is discussing allocating up to 30% of the offering to retail investors – three times or more than what most retail IPOs offer.
BREAKING: Elon Musk plans an unprecedented move for retail investors in SpaceX IPO:
Elon Musk is considering allocating up to 30% of SpaceX’s IPO to retail investors, well above the usual 5% to 10%, according to Reuters.
Under this plan, @ElonMusk Looking forward to “tapping loyal fans” in… pic.twitter.com/SXCYhCijDS
– Al Qubaisi Letter (@KobeissiLetter) March 26, 2026
In a typical IPO, retail investors get about 5% to 10% of the available shares. The rest goes to large institutions such as hedge funds and asset managers, who help set prices and stabilize early demand.
SpaceX’s proposed structure would tip this balance.
Bank of America has been selected to handle domestic retail distribution, with a focus on high-net-worth individuals and family offices in the United States. UBS will deal with the same category of investors internationally.
Morgan Stanley is expected to manage smaller retail investors through its E*Trade platform. Citi will coordinate broader international and institutional distribution.
SpaceX It did not respond to Reuters’ request for comment. Bank of America declined to comment on the report.
Earlier this week, The Information reported that SpaceX plans to file its IPO prospectus with regulators as early as this week or next. The company is targeting a valuation of about $1.75 trillion.
If this valuation holds, SpaceX’s IPO will be among the largest in history.
Why retail investors get a bigger stake
Discussions among consultants initially expected retail participation to reach 20%. Since then this number has increased to 30%.
This shift appears to have been a deliberate choice on Musk’s part. He has a large base of individual investors who have followed his companies closely, including… Teslawhich has built one of the most loyal retail followings in the public markets.
The idea is that retail buyers tend to hold shares longer than fast-moving institutional funds, which may help stabilize the stock after the initial trading frenzy.
SpaceX was also in demand in secondary markets, as investors tried to buy exposure ahead of the IPO. A direct retail allotment in an IPO would give these buyers a cleaner, more organized way to enter.
What happened at X before the IPO
On the same day the Reuters report was published, the Wall Street Journal reported that Musk’s social media platform had laid off its chief marketing officer and more than 20 non-technical employees over the past few weeks.
The timing placed these cuts in the run-up to SpaceX’s IPO filing.
SpaceX has not confirmed the retail allocation number or final timeline for the IPO. The prospectus is expected to provide more details about the offering structure and valuation.
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