SpaceX, the space and artificial intelligence (AI) company led by Elon Musk, will be added to the Nasdaq-100 Index on July 7.
Nasdaq announced in a filing on June 26 (local time) that SpaceX will become a constituent of the Nasdaq-100 Index effective July 7.
The Nasdaq-100 is one of the market's flagship indexes, comprising the 100 largest non-financial companies listed on the Nasdaq Stock Market. It includes leading U.S. technology companies such as Nvidia, Apple, and Amazon.
Because the index is tracked by a large number of exchange-traded funds (ETFs) and index funds, inclusion typically triggers significant inflows from passive investment funds.
According to U.S. investment bank JPMorgan, SpaceX's addition to the Nasdaq-100 could attract approximately US$4.3 billion in passive investment flows.
SpaceX was listed on the Nasdaq Stock Market on June 12. Less than a month after its listing, the company has secured a place in the Nasdaq-100, an unusually rapid inclusion for a newly listed company.
Nasdaq introduced a “fast-track” rule that allows exceptionally large companies to be added to the Nasdaq-100 shortly after their market debut.
Over the past three years, SpaceX has posted results that fluctuated between substantial losses and modest profits. Although the company reported a net loss of US$4.9 billion last year, it qualified for early inclusion under Nasdaq's revised eligibility criteria.
In contrast, S&P Global, which manages the S&P 500 and other major U.S. equity indexes, has decided not to revise its index inclusion rules. As a result, SpaceX will not become eligible for consideration for the S&P 500 until it has been publicly listed for at least 12 months.
