SpaceX, the space and artificial intelligence (AI) company led by Elon Musk, will be added to the tech-heavy Nasdaq 100 index on July 7.
According to a Reuters report on June 26 (local time), Nasdaq announced in a filing that day that SpaceX will be included as a component of the Nasdaq 100 index starting July 7.
The Nasdaq 100 is a benchmark index consisting of the 100 largest non-financial companies listed on the Nasdaq stock exchange.
It includes major U.S. technology companies such as Nvidia, Apple, and Amazon.
As exchange-traded funds (ETFs) and index funds that track the index are managed on a large scale, inclusion in the index typically acts as a positive factor, triggering an inflow of passive funds into the newly added stock.
U.S. investment bank JPMorgan estimated that approximately 4.3 billion dollars (about 6.6 trillion won) in passive funds would flow into SpaceX following its inclusion in the Nasdaq 100.
SpaceX was listed on the Nasdaq exchange on June 12, and it will be included in the Nasdaq 100 less than a month after its initial public offering.
It is highly unusual for a company to be included in a major index immediately after going public.
Nasdaq has introduced a "fast-track" rule that allows for the rapid inclusion of mega-cap companies into the Nasdaq 100.
Over the past three years, SpaceX has recorded financial results that fluctuated between significant losses and small profits.
Although the company posted a net loss of 4.9 billion dollars (about 7.5 trillion won) last year, it was able to enter the Nasdaq 100 early due to relaxed inclusion criteria.
On the other hand, S&P Global, which manages major indices such as the S&P 500—a gauge of 500 large-cap U.S. stocks—has decided not to change its inclusion criteria for the S&P 500 and other major indices.
Consequently, an evaluation for SpaceX's inclusion in those indices will not be possible until 12 months later.
While there are forecasts that the index inclusion will have a positive impact on the stock price in the early stages of listing, controversy over the company's valuation continues.
Michael Field, a senior strategist at research firm Morningstar, said, "The index inclusion was pushed through quickly because there was so much demand," adding, "While many will welcome it, some fund managers believe the stock is overvalued."