What’s the latest update?

It’s barely been two full weeks since Space Exploration Technologies Corp. (traded on the Nasdaq under ticker symbol SPCX)—more widely known by its common name SpaceX—completed its initial public offering, and the Elon Musk-led aerospace firm is already gearing up to hit another major stock market milestone. Starting next month, the company will officially be added to the iconic Nasdaq 100 index. Below, we break down what this development means for SpaceX, and what it could mean for everyday investors.

What’s the latest update?

On June 26, just 15 days after SpaceX made its public market debut on June 12, Nasdaq confirmed that the hybrid aerospace and artificial intelligence company would be joining the exchange’s closely followed Nasdaq-100 Index. While this 15-day turnaround from IPO to index inclusion is extremely fast, it was hardly an unexpected outcome for market observers.

Back in May, Nasdaq updated its eligibility rules for companies seeking a spot on the Nasdaq-100. Previously, newly public companies were required to wait months (or even longer) to qualify for index inclusion. The revised rules cut that waiting window dramatically: any newly listed firm that ranks among the 40 largest Nasdaq-listed companies by market capitalization can now qualify for inclusion just 15 days after its IPO.

Though Nasdaq never specifically named SpaceX when it announced the updated timeline rules for inclusion, many investing industry insiders believe the rule change was crafted specifically to attract Elon Musk, encouraging him to list SpaceX’s shares on Nasdaq instead of the exchange’s biggest rival, the New York Stock Exchange (NYSE).

What exactly is the Nasdaq-100?

Per Nasdaq’s own official description, the Nasdaq-100 is a leading market index composed of 100 “fundamentally sound and innovative” large-cap companies that trade on the Nasdaq exchange.

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