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BlockBeats News, July 6th: The fund manager tracking the Nasdaq 100 Index will complete a forced rebalancing after the local market closes on Tuesday, with approximately $4.3 billion passive buy-in of SpaceX (SPCX) shares. Tens of millions of American investors holding Nasdaq funds in their 401(k), IRA, or regular brokerage accounts will "passively" become SpaceX shareholders without their knowledge. Starting on July 7th, SpaceX will officially become a constituent stock of the Nasdaq 100 — the fastest company to join a major U.S. index in history, with the related fund holding accounting for approximately 0.5% to 0.7%. Nasdaq had previously required newly listed stocks to be traded for a minimum of 3 months and have a public float of at least 10% to be included in the index. However, a new rule that took effect on May 1 significantly lowered the threshold — as long as the market value squeezes into the top 40 of existing index components, a "fast inclusion" can occur with only 15 trading days' notice given 5 days in advance. This rule coincidentally landed just six weeks before SpaceX's IPO on June 12th. Critics have called this time window "too short to achieve price discovery," and have even directly criticized it as "the most shameless manipulation of a major index," benefiting the company, existing shareholders, and the exchange at the expense of passive fund holders who are forced to bear the price cost. With SpaceX's public float accounting for only 3% to 5%, coupled with the float-weighted multiplier, the amount of passive fund buying far exceeds the actual float capacity. Meanwhile, S&P has remained unchanged, with the S&P 500 maintaining its original 12-month observation period and unchanged thresholds like four consecutive quarters of GAAP profitability. SpaceX reported a net loss of $4.28 billion in the first quarter and is projected to have a full-year loss of $4.94 billion in 2025, with the earliest possibility of meeting S&P inclusion requirements not until mid-2027. Analysts point out that the real test will come on August 6th — when the company releases its first-quarter earnings report and approximately 20% of insider shares become unlocked, causing passive buying pressure to disappear and potential selling pressure to emerge, possibly leading to a supply-demand reversal.

The short-selling report also distorted the company’s announcement regarding SpaceX. We are currently evaluating all available legal remedies.

The institution will downgrade the company's investment rating from "Buy" to "Hold", and reduce its target share price from $30 to $25.