Tesla tie-up could be SpaceX's ticket to the S&P 500, JPM says
SPCX•A merger between SpaceX and Tesla could help SpaceX qualify for the S&P 500 before it otherwise would, JPMorgan analysts said. The analysts estimated that inclusion could generate passive demand equivalent to roughly 10% of the combined company's free-float shares.
1. Potential index inclusion
JPMorgan analysts said a stock-for-stock merger between SpaceX and Tesla could give the S&P Index Committee grounds to make exceptions to some index eligibility rules, potentially allowing SpaceX to join the S&P 500. Tesla is already a member of the index.
2. Eligibility requirements
Companies generally must trade publicly for at least 12 months, report profits for the most recent quarter and trailing four quarters under U.S. accounting standards, and have a free float of at least 10% to qualify. SpaceX currently meets none of those criteria and could otherwise wait until at least July 2027 for entry. JPMorgan estimated index inclusion under a merger scenario could generate passive demand equivalent to roughly 10% of free-float shares at the time of the transaction.
