S&P Global (SPGI.N) has affirmed its existing entry requirements for major indices, effectively precluding a swift inclusion for Elon Musk’s SpaceX into the benchmark S&P 500 index (.SPX). The decision deals a notable setback to SpaceX’s ambitions for early index entry following its anticipated initial public offering (IPO). SpaceX is an aerospace manufacturer and space transport services company, known for its rockets and Starlink satellite internet constellation. It is targeting a substantial $75 billion raise and a $1.75 trillion valuation, positioning it among the most valuable U.S.-listed firms, despite only a fraction of its shares expected to be publicly traded.
S&P stated that “exceptions to the financial viability, seasoning, and IWF (investable weight factor) requirements should not be granted solely based on market capitalization.” A key hurdle for S&P 500 inclusion mandates that a company must demonstrate profitability under Generally Accepted Accounting Principles (GAAP) in its most recent quarter, as well as over the sum of its four most recent quarters. SpaceX reportedly recorded a net loss of $4.94 billion in 2025, even as its revenue increased by 33% to $18.67 billion, failing to meet this crucial profitability criterion.
While S&P consulted investors about potentially waiving minimum float and profitability rules for megacap listings, the index provider ultimately maintained its stringent standards for its flagship index. Art Hogan, chief market strategist at B. Riley Wealth, praised S&P Dow Jones Indices’ rules-based approach, emphasising the importance of profitability for index entry. In contrast, Nasdaq has already adjusted its rules, facilitating easier inclusion for newly listed megacaps like SpaceX into its Nasdaq 100 (.NDX) index. S&P Global also confirmed it would modify entry rules for its broader S&P Total Market Index and Dow Jones U.S. Total Stock Market Index, offering a pathway for SpaceX into these less widely followed benchmarks. Additionally, SpaceX has become eligible for inclusion in the Russell U.S. Equity Indexes and the FTSE Global Equity Index Series under their fast-entry provisions.
