Elon Musk Pushes for Early Nasdaq and S&P 500 Listings for SpaceX

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Elon Musk is reportedly demanding that SpaceX be allowed to list on the Nasdaq-100 index and the S&P 500 shortly after its upcoming $1.75 trillion IPO, rather than having to wait the usual 12 months. This would create immediate buying pressure from funds that track these indexes, potentially boosting SpaceX's stock price. However, the move would require the exchanges to change their normal rules to accommodate Musk's wishes.

Why it matters

Musk's ability to influence the Nasdaq and S&P 500 to bend their rules highlights the power of the world's richest person. If successful, it could provide a major boost to SpaceX's stock price after its IPO, but raises questions about whether the company is being given special treatment.

The details

Nasdaq is reportedly considering a "Fast Entry" procedure that would allow newly public companies with market caps over $100 billion to join the Nasdaq-100 index within a month of their IPO, rather than the usual 12-month waiting period. At $1.75 trillion, SpaceX would easily meet this threshold and be one of the top 10 companies in the index. Similarly, S&P Dow Jones Indices may "fast-track" SpaceX's inclusion in the S&P 500 after its IPO, rather than waiting a year. This would force index-tracking funds to buy SpaceX shares, creating buying pressure and potentially boosting the stock price.

• SpaceX is preparing to IPO at a $1.75 trillion valuation.
• Nasdaq is considering a "Fast Entry" procedure to allow large IPOs to join the Nasdaq-100 index within a month.
• S&P Dow Jones Indices may "fast-track" SpaceX's inclusion in the S&P 500 after its IPO.

What’s next

The Nasdaq and S&P 500 will need to decide whether to change their rules to accommodate Elon Musk's demands for early inclusion of SpaceX after its IPO.