Elon Musk has publicly denied reports that SpaceX would exclude retail brokerages Robinhood Markets (HOOD) and SoFi Technologies (SOFI) from its highly anticipated initial public offering. The denial came on March 31, 2026, following a Reuters report that sent Robinhood's stock down roughly 2%.
The original report, published on March 30, stated that Morgan Stanley's E*Trade was in talks to lead the retail portion of the SpaceX IPO and that SpaceX was considering cutting Robinhood and SoFi out of the deal entirely. This potential exclusion was seen as a significant blow, as the SpaceX IPO is projected to be one of the largest in history, potentially raising up to $75 billion at a valuation near $1.75 trillion. SpaceX has reportedly discussed reserving up to 30% of the offering for retail investors, far above the typical 5%-10% allocation.
Musk directly addressed the rumors on social media, stating "These reports are false." His quick correction aligns with earlier coverage indicating the IPO is on track for a June 2026 listing. While it remains undecided whether Robinhood will secure a formal distribution role, Musk's statement signals that a deliberate exclusion of major retail platforms is not part of the current plan.
The news coincided with a separate analyst action on Robinhood. Bernstein SocGen lowered its price target on HOOD stock from $160 to $130, citing valuation, though it maintained an Outperform (buy) rating. The firm still projects strong growth for Robinhood, including 25% EPS growth in 2026 and a 30% revenue CAGR from 2025 to 2027. Analysts highlighted crypto as a key recovery area, modeling a 79% year-over-year rebound in crypto trading volumes in the second half of 2026, aided by the Bitstamp acquisition.
Robinhood's relevance to the IPO is underscored by its massive retail user base of 27.4 million funded customers with $314 billion in assets, and a median customer age of 35, which heavily overlaps with the fan base of Musk's companies like Tesla and SpaceX.
