Elon Musk’s longtime banker returns to spearhead SpaceX’s historic IPO push

9 February 2026

Photograph: Gonzalo Fuentes/Reuters

In the frenetic world of Wall Street dealmaking, a familiar face is stepping back into the spotlight just as one of the most anticipated initial public offerings in history begins to take shape. Michael Grimes, a veteran investment banker widely regarded as one of Elon Musk’s most trusted financial allies, has left his post in the U.S. Commerce Department and returned to Morgan Stanley as chairman of investment banking at precisely the moment the private rocket-maker SpaceX is gearing up for a market debut that could rank among the largest in financial history.

Grimes built his résumé over decades guiding major technology and growth-company offerings, playing pivotal roles in the public listings of Meta Platforms, Uber, Airbnb and Palantir as well as in Musk’s own deals, including Tesla’s 2010 IPO and the acquisition of X, formerly Twitter, for $44 billion. His reintegration into Morgan Stanley signals both his desire to return to the thick of high-stakes dealmaking and the bank’s ambition to secure a leading role in what may be the defining public offering of the next decade.

SpaceX has become one of the world’s most valuable private companies. Following its merger with Musk’s artificial-intelligence venture xAI, the combined entity is valued at around $1.25 trillion, dwarfing almost every other privately held business and making SpaceX’s IPO an event that could reshape financial markets. The company is expected to raise tens of billions of dollars when it finally lists, with some estimates suggesting around $40 billion in new equity, an amount that would make it one of the largest IPOs ever. If fees are allocated in line with past mega-offerings, total underwriting fees across all participating banks could exceed $400 million, a prize Grimes and Morgan Stanley are keen to capture.

For investors and advisors, SpaceX represents more than just a gigantic issuance of stock. It embodies the convergence of several of Musk’s most ambitious ventures: reusable rockets and satellite internet through Starlink, deepening artificial-intelligence capabilities via xAI, and long-term goals that stretch from lunar data centers to potential human habitation on Mars. The scale and scope of the company’s operations, combined with its sprawling valuation, make its transition from private fervor to public market scrutiny one of the most consequential corporate events on the calendar.

The timing of Grimes’s return is noteworthy. After joining the administration to serve in an advisory role at the Commerce Department where he oversaw government investment initiatives and helped foster public-private partnerships he could have remained in government service and forwent the financial windfall of leading a historic IPO. Instead, his decision to rejoin Morgan Stanley underscores both the personal stakes and the competitive nature of investment banking, where securing marquee transactions can define a career and elevate a firm’s standing in global capital markets.

Morgan Stanley is not alone in positioning itself for a major role in SpaceX’s offering. Analysts and industry insiders expect a cadre of elite banks including JPMorgan Chase, Bank of America and Goldman Sachs to share top billing in underwriting the deal, each seeking to carve out a portion of the lucrative fees on offer. For Morgan Stanley, having Grimes at the helm bolsters its credentials, especially given his longstanding relationship with Musk and his track record of navigating complex, high-profile deals.

Grimes’s reputation on Wall Street stems not just from his deal history but from his ability to cultivate deep personal connections with founders and corporate leaders, a quality that has allowed him to thrive in the technology sector’s competitive advisory environment. His return also reflects broader trends in the banking industry, where firms are vying for dominance in an IPO market that many believe will be unusually active in 2026, driven by pent-up demand from private companies and investors alike.

For Musk, whose ambitions span the terrestrial and extraterrestrial, partnering with trusted financial advisors is central to his strategy for unlocking new capital without diluting his control over his enterprises. Figures like Grimes have helped him balance the dual imperatives of growth and financial discipline, shepherding deals that bring public capital to bear on private innovation while maintaining strategic coherence across his sprawling business empire. As SpaceX prepares for its turn in the public markets, the reprise of this longstanding partnership highlights how personal relationships remain as crucial as institutional firepower in the world of mega-IPOs.

Yet the SpaceX IPO is not without its challenges and questions. Regulatory scrutiny around stock market listings of companies tied to aerospace and national security interests is intensifying, and potential investors are watching closely for how disclosure requirements and governance issues will be navigated. Moreover, the broader market’s appetite for extraordinarily high valuations in the face of macroeconomic uncertainty has put extra pressure on dealmakers to craft a compelling narrative that balances growth prospects with disciplined financial expectations.

Nevertheless, the return of Grimes to Morgan Stanley represents a major statement of intent. It suggests that the bank believes not just in the potential of the SpaceX IPO but in its capacity to shape the future of capital markets. Should SpaceX successfully list at the valuations and proceeds being discussed, it would eclipse almost every recent offering in history, redefining standards for technology and aerospace companies and setting the stage for a new era of ambitious public listings.

In a financial ecosystem where relationships matter as much as balance sheets, the reunion of Musk’s go-to banker with one of Wall Street’s most storied institutions underscores the high stakes of this moment. For investors, executives and advisors around the world, the SpaceX IPO is not just a deal; it is a symbol of a market poised to enter a new constellation of opportunity and challenge.