SpaceX pushes for early index inclusion ahead of historic IPO

Elon Musk’s SpaceX is pushing for early inclusion in major stock market indexes as it prepares for a highly anticipated public listing later this year, a move that could give its shares an immediate boost after the IPO.

According to CNBC, advisers to SpaceX—recently merged with Musk’s artificial intelligence company xAI—have begun discussions with major index providers, including Nasdaq. 

The talks centre on whether SpaceX and other high-profile startups going public this year could be added to key indexes faster than current rules typically allow.

Under standard practice, newly listed companies must wait several months or even up to a year before becoming eligible for inclusion in major benchmarks such as the S&P 500 or the Nasdaq 100. 

Entry into these indexes is highly sought after, as it triggers buying from index-tracking funds and other institutional investors that are required to hold shares of listed companies.

The waiting period is designed to ensure newly public firms demonstrate sufficient liquidity, stability, and trading volume before absorbing large inflows from passive investment funds. 

However, SpaceX is seeking to bypass these traditional timelines to provide earlier liquidity for shareholders following its IPO.

Sources said SpaceX’s advisers have explored potential changes to index policies that would allow faster entry, not only benefiting SpaceX but also other highly valued private companies preparing to go public. The effort reflects the scale and confidence surrounding the company’s debut.

SpaceX was last valued at around $800 billion and is reportedly targeting a valuation exceeding $1 trillion. 

If successful, the offering would rank as the largest initial public offering ever in the United States.