Wow, the S&P Dow Jones Indices has just officially announced that they will NOT be changing their inclusion rules to make it easier for “MegaCap” companies (such as @SpaceX) to be fast-tracked into the S&P 500.
Their reasoning:
"S&P DJI determined that exceptions to the financial viability, seasoning, and IWF requirements should not be granted solely based on market capitalization. The decision not to adopt the proposed exceptions preserves core index principles by maintaining consistent application of these key requirements. Although there may be trade-offs between strict adherence to these eligibility requirements and broad representativeness, the current methodology provides substantial market coverage and sector balance. As a result, the indices can continue to meet their stated objectives while preserving their role as representative and investable benchmarks for the U.S. equity market.
No changes will be made to the eligibility criteria including financial viability screens, seasoning period, or minimum IWF, for the S&P 500, S&P MidCap 400, or S&P SmallCap 600 as a result of the S&P Dow Jones Indices consultation on the treatment of MegaCap companies. Accordingly, there will be no changes to existing methodology for this index family."
This means that the earliest @SpaceX could be eligible to be added to the S&P 500 would now be June 2027.
The requirements that will now remain in place are:
• No changes to S&P 500 eligibility rules for mega-cap companies.
• Mega-cap companies will still need to wait 12 months after their IPO before being considered for S&P 500 inclusion.
• S&P will not waive profitability requirements for mega-cap companies. The company must have positive GAAP net income in the most recent quarter, and the sum of the most recent four consecutive quarters.
• S&P will not waive minimum public float requirements for mega-cap companies. At least 10% of a company's shares must be publicly tradable ("free float").
The S&P rejected proposals that would have:
• Reduced the IPO seasoning period from 12 months to 6 months
• Waived profitability requirements
• Waived minimum public float requirements
🚨 Only 4% of SpaceX shares will be made available as the free float, making the $SPCX IPO likely to be EXTREMELY volatile.
Ahead of this, Goldman Sachs says they expect SpaceX revenue to 100X by 2030.
Prepare for liftoff.
Today, SpaceX received approval from Grimes County, Texas for huge tax breaks for the company's Terafab project.
The tax abatement would give SpaceX a full exemption on property taxes tied to the project.
County leaders have framed the Terafab proposal as a potentially transformative moment for Grimes County. Judge Joe Fauth called it a “generational change." Grimes County commissioners voted 4-1 to grant the company a tax increment reinvestment zone and tax breaks for the $55 billion project east of College Station.
More info: https://t.co/xkSfu0oq8B
NEWS: Fidelity is opening the SpaceX IPO to any customer with at least $2,000 in a retail brokerage account, down from as much as $500,000 for previous offerings.
The reason, per Fidelity's own FAQ, is that SpaceX reserved up to 30% of the offering for retail investors. Typical IPOs set aside just 5% to 10%.
Customers can request anywhere from 1 share to 1 million shares. If demand outruns supply, Fidelity will run a lottery to spread allocations as fairly as possible.
One warning for flippers. Selling allocated shares within 15 days of trading brings a 6 month ban from future IPOs at Fidelity. A second flip brings 1 year. A third is permanent.
If you love someone, put them in a Tesla.
Tesla just saved this guy’s life.
A large truck destroyed this car.
Minutes later, the driver was standing on the side of the road, calmly taking photos of the crash scene.
Looking at the wreckage, that’s nothing short of remarkable!
Ron Baron put $1.7 billion into SpaceX while it was private - it turned into $15 billion
he just placed a billion dollar order at the IPO and said "10 trillion, 20 trillion, 30 trillion and I could be very low"
he started with $100 million in 1992, made his clients $61 billion in profit when he was a kid he drove an ice cream truck, now the president of the NYSE comes to him for advice
"I pushed all the chips to the center of the table to be tied to the most successful man on the planet, clearly risky, but that's my game"
"never bet against the guy with superpowers who would never give up"
bookmark and watch it today ↓
🚨 ELON MUSK IS GOING TO WAR WITH THE BANKING CARTEL.
SpaceX is in talks to pay Wall Street under 0.75% to run the biggest IPO in history.
For context: most IPOs hand banks 2–7% of the money raised.
On a $75 BILLION raise, a normal 2% cut = $1.5 billion to the banks.
Elon's deal? Around $500 million.
He just slashed nearly a billion off Wall Street's payday.
Nobody negotiates with the banks like this.
Follow for every move before June 12.
@wholemars Once the charging network is built out they Tesla Semi take over. Most owner/operators will see how much money they can make in savings on not only fuel but brakes and oil changes they will switch. Also MUCH safer , especially going downhill, no runaways.