SpaceX will be added to the Nasdaq 100 index on July 7, Nasdaq confirmed on Friday, a move expected to increase investment flows into Elon Musk’s rocket and artificial intelligence company through funds that track the benchmark.
The inclusion is expected to boost demand for SpaceX shares because exchange-traded funds and other investment products designed to follow the performance of the Nasdaq 100 typically purchase shares of companies newly added to the index.
SpaceX made its Nasdaq debut on June 12 after becoming a publicly traded company. The company’s entry into the index comes after Nasdaq and other major index providers, including FTSE Russell and MSCI, adjusted listing requirements to make U.S. market access more attractive for companies seeking public listings.
The changes affected requirements related to profitability, the time period after an initial public offering and the number of shares available for public trading.
SpaceX’s financial performance has fluctuated in recent years, with the company recording periods of losses and smaller profits over the past three years. The company reported a net loss of $4.9 billion last year.
The addition to the Nasdaq 100 could bring significant passive investment demand. J.P. Morgan estimated that SpaceX’s inclusion in the index could result in $4.3 billion in passive inflows as funds adjust their holdings to match the benchmark.
Investors commonly use mutual funds and exchange-traded funds such as Invesco’s QQQ and QQQM, which track the Nasdaq 100, to gain broader exposure to major technology and growth companies.
Michael Field, chief equity market strategist at Morningstar, said the rapid inclusion of SpaceX reflected strong demand for the company’s shares. He said many investors would welcome the move, while some fund managers remained cautious about the company’s valuation.
“There’s a lot of demand, that’s why they fast-tracked the integration into the index,” Field said.
SpaceX’s addition comes as investor interest grows around major private technology companies preparing for potential public offerings. Artificial intelligence companies OpenAI and Anthropic are also expected to pursue initial public offerings this year or next year, with both reportedly targeting valuations above $1 trillion.
The company’s entry into the Nasdaq 100 does not guarantee inclusion in other major stock indexes. S&P Global said this month that it was not changing its requirements for SpaceX to qualify for major indexes, including the S&P 500, and would wait at least 12 months before considering the company for inclusion.
