SpaceX IPO may allocate 30% to retail investors as Musk restructures X with job cuts

Elon Musk is considering allocating as much as 30% of SpaceX’s initial public offering to retail investors, according to a Reuters report, a sharp break from the typical 5% to 10% allocation seen in most listings.

The move reflects Musk’s strategy to lean on loyal backers and individual investors to stabilize trading after the debut of what could be one of the largest IPOs in history.

The proposed structure also gives Musk tighter control over how shares are distributed. Instead of allowing banks to broadly compete, SpaceX is assigning firms specific roles across regions and investor segments. Bank of America is expected to focus on US high-net-worth clients, while Morgan Stanley will handle smaller retail orders through its E*TRADE platform. Other banks including UBS and Citi are tasked with international distribution.

The company is betting that its strong retail following, built through Musk’s track record with Tesla and Starlink, will translate into long-term shareholders rather than short-term traders. Demand is expected to be broad, ranging from family offices to smaller investors who have tracked SpaceX in private markets for years.

According to a Bloomberg report, SpaceX is preparing to hold investor briefings in April as part of early IPO discussions, with plans to file confidentially as soon as this month. The offering could raise up to $75 billion, potentially valuing the company near $1.75 trillion and making it one of the largest public listings ever.

At the same time, restructuring is underway across Musk’s broader ecosystem ahead of the listing. A Wall Street Journal report said X has cut staff and removed senior leadership roles following its integration with xAI. The changes are aimed at reducing costs and improving revenue generation as the combined entity aligns operations ahead of the IPO.

SpaceX has not finalized the timing or size of the offering, and the structure remains subject to change. However, the planned retail-heavy allocation and tightly controlled bank mandates signal an unconventional approach that could reshape how major tech IPOs are executed.