economy
SpaceX stock could face further pressure as first batch of shares unlock since IPO
With the first tranche of SpaceX shares held by insiders unlocking, the stock could see downward pressure.
TL;DR
- Over 911 million SpaceX shares become available for trading on Thursday as initial lockup restrictions expire.
- This represents approximately 7% of shares outstanding, potentially pressuring a stock already down over 50% from its mid-June high.
- The stock price has fallen significantly since its IPO, closing at $108.27 on Wednesday after reporting capital expenditures more than double its revenue.
- Further batches of shares are set to unlock in late August, September, and October.
- Elon Musk's holdings are locked up until June 2027.
- One investor, Atlanta Falcons safety Jessie Bates III, plans to sell all his shares to 'lock in gains', having invested in 2022 at a $127 billion valuation.
- Bates' investment portfolio, managed by RISE Family Office, also includes stakes in other pre-IPO companies.
- Bates indicated that strategic acquisitions could convince him to buy again, referencing SpaceX's merger with xAI and planned acquisition of Cursor.