It has hardly been two weeks since Space Exploration Technologies Corp. (Nasdaq: SPCX), better known as SpaceX, went public, but the Elon Musk-led company is already poised to achieve another significant stock market milestone.
Next month, it will be added to the Nasdaq 100. Here’s what that means for the company—and for you.
What’s happened?
On June 26, just 15 days after SpaceX made its stock market debut on June 12, Nasdaq announced that the space and AI company will be added to the institution’s closely watched Nasdaq-100 Index.
And that 15-day timing? It’s fast, but it’s not exactly a surprise.
In May, Nasdaq changed its rules for inclusion in the Nasdaq-100. Previously, a newly public company would take months or more before joining. But under the new rules, the inclusion window was reduced to just 15 days from its IPO if the company ranks among the top 40 Nasdaq-100 companies by market cap.
While Nasdaq never specifically mentioned SpaceX when announcing its new Nasdaq-100 timeline rules, many in the investing sphere feel the company did so to court Elon Musk and get him to list SpaceX’s shares on Nasdaq rather than the rival New York Stock Exchange (NYSE).
What is the Nasdaq-100?
The Nasdaq-100 is an index of “100 fundamentally sound and innovative” companies that are traded on the Nasdaq, according to the stock exchange itself.
These companies cover a range of industries, including tech, healthcare, utilities, and consumer goods. But one notable exclusion is financial services firms, as these companies don’t fit under the “innovative” banner.
Nasdaq periodically adds companies to the Nasdaq-100, the most recent was Sandisk Corporation (Nasdaq: SNDK), which joined the index on April 20 under the old rules.
But when one company joins, another must leave, because the Nasdaq-100 is limited to 100 companies. When Sandisk joined, Atlassian Corporation (Nasdaq: TEAM) was ejected from the Nasdaq-100.
Given that the Nasdaq-100 focuses on innovative companies, it’s no surprise that many of its constituents are also the largest tech companies on the planet. They include include: Apple, Adobe, Amazon, Alphabet, Intel, Microsoft, Netflix, and, yes, Elon Musk’s other public company, Tesla.
What is the benefit of being included on the Nasdaq-100?
The first benefit is prestige. If your company is included in the Nasdaq-100, you get bragging rights and can call yourself a “Nasdaq-100 company.” And since the Nasdaq-100 tracks the most “innovative” companies on the Nasdaq, you get one of the best “innovative” stamps of approval there is.
But the main benefit is financial. Many mutual funds and exchange-traded funds (ETFs) are designed to mirror the Nasdaq-100. Popular ETFs that mirror the Nasdaq-100 include Invesco QQQ Trust (QQQ) and iShares Nasdaq 100 ETF.
And nearly all the major brokerage firms offer mutual funds that mirror the Nasdaq-100, including Fidelity, Schwab, and Vanguard.
When a company is added to the Nasdaq-100, these ETFs and mutual funds need to buy that company’s shares—in the ratio that the company accounts for within the index—and include them in their ETFs and mutual funds.
Retail investors, in turn, buy shares in these ETFs and mutual funds in order to diversify their portfolios—allowing them to own stock in every Nasdaq-100 without having to buy individual shares in 100 companies.
So when a company is added to the Nasdaq-100, the day before it officially is included, every mutual fund and ETF that tracks the index needs to buy shares. And when a company’s shares are bought in large numbers, that company’s stock price tends to rise—thus, the financial benefit to being included in the Nasdaq-100.
Now for the bad news (for retail investors)
Under Nasdaq’s old rules, companies often had to wait many months before they were even eligible to be included in the Nasdaq-100.
This lengthy timeframe was in place to reduce the potential for volatility in the index. While many companies see their share prices spike after an IPO, that share price can fluctuate wildly once the initial excitement for the stock wears off, or lockout periods expire.
But under the new rules that let a company join the Nasdaq-100 after only 15 days post IPO, that volatility buffer is lost. And that’s bad news for retail investors and those with pensions.
Many 401(k) managers and pension funds invest in Nasdaq-100 mutual funds and ETFs, and if SpaceX tanks six months from now, it could bring down the value of people’s retirement accounts.
SpaceX is the first company to be included in the Nasdaq-100 under the new rules.
SpaceX Nasdaq-100 timeline
SpaceX isn’t part of the Nasdaq-100 yet, but it will be soon. Here’s the timeline of SpaceX’s journey to the Nasdaq-100:
- May 1, 2026: Nasdaq’s new Nasdaq-100 inclusion rules go into effect, allowing a company to join the Nasdaq-100 after just 15 trading days if it meets other requirements.
- June 12, 2026: SpaceX begins trading on the Nasdaq, kicking off the 15-day clock.
- June 26, 2026: Nasdaq confirms SpaceX has met all of the requirements to join the Nasdaq-100.
- July 6, 2026: This is the day, after market close, that ETFs and mutual funds will have to buy SpaceX shares to include in their funds.
- July 7, 2026: SpaceX joins the Nasdaq-100, and if you own ETFs like QQQ or mutual funds that track the Nasdaq-100, you now own a stake in SpaceX, for better or worse.
