E*Trade in Talks to Lead SpaceX IPO for Retail, Report Says

Morgan Stanley’s E*Trade unit is in talks with SpaceX to lead the sale of IPO shares to small investors, potentially being favored over rival brokerage platforms from Robinhood Markets Inc. and SoFi Technologies Inc., Reuters reported, citing two people familiar with the matter.

SpaceX is considering cutting Robinhood and SoFi out altogether despite the two firms pitching for roles on the initial public offering, Reuters said. The rocket and satellite company would instead rely on Morgan Stanley to route shares set aside for retail investors through E*Trade, Reuters said.