[snek_case]

Yeah this is pretty shady. The S&P 500 in particular has fairly strict criteria (e.g. 4 consecutive quarters of profitability) and those criteria exist for a reason. They made me more comfortable buying the S&P 500 knowing I'm not buying pre-revenue companies. This is a bad precedent to set just to please Elon.

[Ajedi32]

I'm a bit out of the loop, but has SpaceX not been profitable for the last 4 quarters? I understand they're investing a lot into R&D for Starship but I was under the impression they've been making a killing on Starlink.

[jmuguy]

Starlink itself is profitable but the insane valuation they're trying to get for the IPO is based on an assumed continued massive growth of users - and even then I don't think Starlink by itself makes SpaceX a trillion dollar company.

[ben_w]

If Musk personally wasn't completely toxic worldwide, and if there wasn't all the other new space companies noticing the Egg of Columbus* that is cheap rockets and the potential for comm sat constellations that launch prices enable, I could believe 100e6 people would buy a $50/month service. A common rating for valuation is profit over 20 years, that revenue (not profit, IDK the margin) would be $1.2T.

* Egg of Columbus: https://en.wikipedia.org/wiki/Egg_of_Columbus

Many seem to also be doing this with androids around the time he started talking about them, hence how we can buy them and put them to work even though Optimus still hasn't launched yet.

[jauntywundrkind]

Past performance as a company is like 20% of the concern here.

The concern is ~80% that a brand new stock enters the market & immediately has to be bought by everyone. The market has no time to adjust & settle.

This is fleecing everyone & it's entirely unclear under what madness this would ever have been considered.

There's so many irregularities and abnormalities being considered here, and all of them seem like pretty straightforward safeguards. It feels like nothing short of a conspiracy that so many norms would be pushed aside to consider listing spacex so quickly in so many indexes. "The proposal could also remove the minimum Investable Weight Factor requirement for megacap companies." For fuck sake! https://x.com/Benzinga/status/2050244492335206911

[jsnell]

We don't know. There is reporting that they have positive EBITDA, but that's not the same as profitable. Basically it would completely ignore launch costs.

They also aren't just the rocket and satellite company any more, but include Twitter and xAI, both of which would contribute heavy losses.

Guess we'll find out soon enough!

[_aavaa_]

Maybe, but since then it has absorbed xAI and Twitter, neither of which are known for producing money.