Elon Musk’s SpaceX gets MSCI green light, remains excluded from S&P 500 – Firstpost

Elon Musk’s SpaceX is poised to secure early entry into MSCI’s global equity benchmarks after the index provider confirmed it will apply existing fast-track rules for large initial public offerings (IPOs), paving the way for potential inclusion soon after its market debut.

The decision could trigger significant demand from passive investment funds that track MSCI’s widely followed indexes. However, the rocket maker will still remain outside the S&P 500, underscoring differing approaches among major index providers on what qualifies for inclusion.

MSCI opens door to early inclusion

MSCI said on Monday it will continue applying its established criteria that allow large, highly liquid IPOs to enter its Global Standard Indexes through an accelerated process. Based on current expectations, SpaceX is likely to meet the thresholds for early inclusion once trading stabilises after listing.

The company is set to begin trading on the Nasdaq on June 12, following a highly anticipated IPO that is expected to
value it at around $1.75 trillion. Trading would place SpaceX on track for possible MSCI inclusion roughly 10 trading days later, depending on market conditions.

Passive funds tracking MSCI indexes manage an estimated $5.79 trillion in assets, meaning even partial inclusion could drive substantial buying pressure for SpaceX shares.

S&P 500 keeps stricter rules

In contrast, S&P Global has opted not to fast-track SpaceX into the S&P 500, sticking to its existing requirement that companies must report consistent profitability before inclusion.

SpaceX, despite strong revenue growth, posted a net loss of $4.94 billion in 2025 even as revenue rose 33 per cent to $18.67 billion. The company’s limited free float — estimated at about 7 per cent of shares at listing — also adds complexity for index eligibility.

Massive valuation, limited float

SpaceX is targeting a $75 billion capital raise in its IPO, further cementing its position among the most valuable private technology firms globally. If its valuation holds at around $1.75 trillion, it would rank among the top 10 most valuable US-listed companies.

However, with only a small portion of shares freely tradable, market liquidity could remain constrained even as index funds are required to participate if inclusion proceeds.

Passive funds and market impact

Analysts say MSCI inclusion could amplify demand beyond traditional investors, as trillions of dollars in index-linked funds adjust their portfolios to reflect the new entrant.

The move also comes as other index providers, including FTSE Russell and Nasdaq, have updated rules to ease inclusion for mega-cap IPOs, reflecting growing competition to capture high-profile listings in a changing market landscape.

Musk pitches broader AI ambitions

The index developments come as SpaceX chief executive Elon Musk continues to expand the company’s long-term narrative beyond rockets and satellite communications.

In a recent presentation, Musk said building orbital AI data centres is “not a difficult engineering challenge,” arguing that much of the required technology already exists within SpaceX’s Starlink satellite network.

He said the company’s proposed orbital computing satellites would operate as AI processing nodes in space, powered by solar energy and cooled using radiation into space — potentially easing constraints faced by Earth-based data centres.

SpaceX said early versions of these satellites could generate around 150 kilowatts of peak power and 120 kilowatts of sustained compute capacity, comparable to high-end AI server infrastructure.

The company also said its upcoming Starship rocket system would be central to deploying large-scale orbital computing infrastructure.