SpaceX stock could face further pressure as first batch of shares unlock since IPO
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- 911 million SpaceX shares unlock Thursday as initial IPO lockup restrictions expire, representing about 7% of shares outstanding and exceeding the 639 million sold in the company's record IPO
- SpaceX stock closed Wednesday at $108.27, down more than 50% from its $225-plus mid-June high, after the company reported capital expenditures more than twice revenue in its first earnings report
- Greg Martin, co-founder of Rainmaker Securities, said the lockup lifting may affect the stock's "near-term path" more than fundamentals or strategy
- Mizuho analysts cautioned in a Wednesday report that shares becoming eligible for sale does not mean the full tranche will be offered into the market
- Jessie Bates III, a safety for the Atlanta Falcons, plans to sell all his SpaceX shares — bought at about $150,000 in 2022 at a $127 billion valuation, potentially worth over $1.5 million at SpaceX's current $1.43 trillion valuation
- Elon Musk holds more than 6 billion SpaceX shares locked up until June 2027, with additional unlock tranches of 319 million shares on August 20, roughly 700 million in September, and a similar number in October
Why it matters: Early investors and employees gain immediate liquidity on 911 million newly tradable shares, while existing shareholders absorb dilution risk at a moment when SpaceX already trades 50% below its June high. The supply pressure compounds through October with roughly 1.7 billion more shares unlocking, but Musk's own 6 billion shares remain frozen until June 2027 — meaning smaller holders like Bates exit while the largest insider stays locked in.
