Early Shareholders to Cash Out! Over 900 Million SpaceX Shares Unlocked, Stock Price Faces Further Pressure

The post-listing share lock-up period for SpaceX (SPCX-US) ended on Thursday (6th), allowing early investors their first opportunity to sell part of their holdings. More than 911 million shares have become eligible for trading, accounting for approximately 7% of outstanding shares—surpassing the 639 million shares issued during the company's initial public offering (IPO). This could place additional selling pressure on the stock price, which has already declined over 50% from its mid-June highs.

The reusable rocket manufacturer led by Elon Musk surged to $150 shortly after listing on Nasdaq in June, briefly surpassing $225 in the following days. However, the stock experienced sharp volatility over the subsequent eight weeks, closing Wednesday at a low of $108.27. SpaceX reported its first earnings since going public after Tuesday’s market close, revealing capital expenditures more than double its revenue, prompting a sharp decline in share price.

Greg Martin, co-founder of Rainmaker Securities, stated that the expiration of the lock-up period could have a more direct impact on SpaceX’s near-term stock movement than the company’s fundamentals or strategy.

Moreover, additional shares are expected to unlock in the coming months. According to the prospectus, another 319 million shares may be released on August 20, followed by approximately 700 million shares in September and a similar amount in October, steadily increasing the number of shares circulating in the market.

However, Mizuho analysts cautioned that while the potential supply increase is substantial, eligibility for sale does not mean all shares will immediately flood the market.

Elon Musk remains SpaceX’s largest shareholder, holding over 6 billion shares, but his stake is not included in this unlock as his lock-up period extends until June 2027.

Jessie Bates III, safety player for the Atlanta Falcons, is among the early investors preparing to cash out. He invested approximately $150,000 in 2022 when SpaceX was valued at $127 billion. With the company now valued at $1.43 trillion, his shares could be worth over $1.5 million. Bates said he plans to sell all his shares to lock in profits.

In February, SpaceX merged with Musk’s AI firm xAI, achieving a post-merger valuation of $1.25 trillion. Prior to its IPO, the company agreed to acquire AI coding startup Cursor for $60 billion, a deal expected to close this quarter. As markets watch SpaceX expand through acquisitions, they will closely monitor the actual scale of share sales from this first unlock and whether it exacerbates the stock’s post-IPO decline.