SerpApi.Org
SpaceX (SPCX) will begin releasing large blocks of previously restricted shares next month, with insiders becoming eligible to sell stock worth as much as $116 billion in the first phase of a staggered lock-up schedule following the company's blockbuster IPO.
The first restrictions expire on Aug. 6, shortly after SpaceX reports quarterly earnings. Under the company's unusual lock-up structure, about 911.5 million shares will become eligible for sale initially, with hundreds of millions more potentially unlocking immediately if the stock meets a performance target tied to its post-IPO share price.
For investors, the unlocks could increase selling pressure on a stock that has already retreated sharply from its post-listing peak. At the same time, the larger public float could improve trading liquidity and broaden institutional ownership over time.
By early December, more than 5.3 billion shares could be available for trading, compared with roughly 639 million today, according to the company's IPO filing.
The prospect of additional supply has drawn significant interest from short sellers. Roughly 30% of the currently tradable shares are sold short, according to S3 Partners, as investors bet the expanding float and insider selling could weigh on the stock.
SpaceX shares have fallen about 37% from their mid-June high after a broad pullback in artificial intelligence-related stocks and a recent Starship launch scrub tied to an engine problem. Even so, early investors remain positioned for substantial gains. The company was valued at roughly $400 billion in a private transaction a year ago before acquiring xAI, a deal that significantly increased the combined company's valuation.
Chief Executive Elon Musk, who controls about 60% of the company's outstanding shares, remains subject to a longer lock-up and is not expected to begin selling until more than a year after the June IPO.
