On Thursday, early investors in SpaceX will be able to sell a portion of their holdings as lockup restrictions expire, allowing over 911 million shares, or about 7% of the total shares outstanding, to enter the market. This comes after a turbulent period for SpaceX's stock, which peaked at over $225 shortly after its IPO in June but has since fallen to $108.27.
The decline was exacerbated by the company's first earnings report, which revealed that capital expenditures were more than double its revenue. Analysts from Mizuho caution that while the increase in available shares is significant, it does not necessarily mean that all unlocked shares will be sold immediately.
Notably, Jessie Bates III, an NFL player, plans to sell his shares to secure profits, having purchased them at a valuation of $127 billion when SpaceX was valued at $1.43 trillion. Additional unlocks are expected in the coming months, with 319 million shares becoming available on August 20 and around 700 million in both September and October.
Elon Musk, the largest shareholder, remains locked in until June 2027, which may stabilize the stock against a flood of selling from other investors