Index providers relax rules allowing unprofitable SpaceX to join total-market funds within days of its public debut.
SpaceX will go public at a $1.75 trillion valuation, positioning it among the largest U.S. companies by market capitalization immediately after its IPO. The company reported $18.7 billion in 2025 revenue but posted a GAAP net loss of $4.9 billion, with Starlink contributing $11.4 billion of total revenue.
Index providers have eased long-standing rules designed to exclude unprofitable firms from retirement-focused funds. This change allows SpaceX to enter total-market index funds within five trading days of its IPO, bypassing traditional profitability requirements. The shift reflects evolving market dynamics but raises questions about risk exposure for 401(k) investors.
The inclusion could impact broad-market funds widely held in retirement accounts, as SpaceX’s valuation and revenue profile differ significantly from historical index constituents. No immediate market reaction was specified in the filing details.