Russell indexes to add SpaceX triggering billions in passive buying
- SpaceX is set to be added to FTSE Russell U.S. indexes after Friday’s close, forcing passive funds to buy nearly $3 billion worth of shares.
- The stock has been highly volatile since its IPO, trading at $153 after reaching a high of $225.64, with a $2 trillion market capitalization.
- SpaceX, which lost $4.9 billion last year, is valued at 107 times estimated 2025 sales as investors bet on its satellite internet, AI, and space launch dominance.
SpaceX (NASDAQ:SPCX) is set to join FTSE Russell U.S. indexes after the close of trading on Friday as part of the semi-annual reconstitution.
Passively managed funds tracking the indexes, including the iShares Russell 1000 ETF, are expected to purchase nearly $3 billion of SpaceX shares to match their benchmarks.
Only about $100 billion of SpaceX’s shares are publicly traded despite its nearly $2 trillion market capitalization, with the remainder held by Elon Musk, insiders, and employees.
The addition comes after a volatile post-IPO period in which the stock soared as high as $225.64 before closing Thursday at $153, well above its $135 IPO price.
SpaceX is also scheduled to join the Nasdaq 100 in July, which will trigger additional buying by large index-tracking funds such as the Invesco QQQ ETF.
The company reported a $4.9 billion loss last year but trades at approximately 107 times estimated 2025 sales as investors price in its leadership in satellite internet, AI infrastructure, and commercial space launches.
SpaceX’s index additions follow a similar event for Tesla in 2020 that created a notable closing auction squeeze and highlight growing investor interest in Musk-led companies.
