S&P Blocks Early Entry for SpaceX, Refuses Megacap Rule Waiver

In a major setback for SpaceX, the S&P has ruled out changing its existing rules for entry of megacap companies into the benchmark index.

S&P Dow Jones Indices confirmed that exceptions to its seasoning and profitability rules for megacaps won't be made, effectively blocking an early entry for Elon Musk's rocket startup, according to a CNBC report.

SpaceX is raising $75 billion and targeting a valuation of $1.75 trillion. At this valuation, SpaceX would be placed among the top ten most valuable companies listed in the US.

However, S&P Global said that rules governing entry to its broader S&P Total Market Index and Dow Jones US Total Stock Market Index would be modified making it easier for SpaceX to be listed on these less-widely followed indices, the CNBC report added.

According to the S&P 500 profitability rules, a company has to be profitable in the most recent quarter under the Generally Accepted Accounting Principles (GAAP), as well as the most recent four quarters. SpaceX reported a net loss of $4.94 billion in 2025.

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The other two requirements entail a company to be publicly listed for at least a year before being considered for listing on S&P and a public float of 10 per cent.

S&P Dow Jones had sought responses from stakeholders on waiving these rules for megacap listing.

Nasdaq already effected changes for listing of megacaps like SpaceX, Anthropic and OpenAI. That would make Nasdaq index funds buy a sizeable lot of SpaceX shares when it gets listed.

SpaceX and Anthropic are already preparing for their listing while OpenAI is expected to join them soon. All three are still not profitable even as they continue to expand capital expenditure ramping up their compute infra.

The SpaceX IPO is the biggest so far and the company plans to sell 555.6 million shares at an initial price of $135 a share, according to the company's filing with the Securities and Exchange Commission.

The listing is likely to make Elon Musk the first trillionaire in the world.

The other AI startup Anthropic recently raised $65 billion in a funding round valuing the company at $965 billion.

(With inputs from ANI)