E*Trade, part of Morgan Stanley, is vying to lead the sale of SpaceX shares to U.S. retail investors in its historic IPO, edging out competitors like Robinhood and SoFi. The IPO could potentially allocate a significant portion to smaller retail investors, a highly contested market segment among major brokerages.

Battle for SpaceX IPO: E*Trade's Race Against Robinhood and SoFi

Morgan Stanley's E*Trade is in advanced discussions with SpaceX to lead the sale of the rocket maker's shares to U.S. retail investors, outpacing competitors such as Robinhood and SoFi, sources familiar with the situation have revealed. SpaceX's highly anticipated IPO, possibly the largest in history, may see Robinhood and SoFi sidelined.

It's an unusual move for platforms like Robinhood and SoFi, both key players in previous high-profile listings. E*Trade, Morgan Stanley's brokerage platform, is poised to secure a significant chunk of the shares earmarked for retail investors. Despite ongoing negotiations, final plans remain fluid as SpaceX approaches its IPO.

Morgan Stanley, leveraging its acquisition of E*Trade, aims to expand its retail market presence. This potential deal signifies a strategic move away from its traditional reliance on wealth management and institutional investors, capturing interest from retail investors, especially the followers of SpaceX's founder Elon Musk.