SpaceX’s IPO Lockup Expiration Approaches: Key Insights on Upcoming Seller Trends

Key Points

• SpaceX’s earnings-linked lockup release could free up to 911.5 million shares, significantly impacting the market following its first earnings report, which has not yet been scheduled.

• Currently, SpaceX’s stock trades below its IPO price of $135, at approximately $131, marking a 42% decline from its post-IPO peak.

• Subsequent share releases will continue into December, with Elon Musk’s own shares remaining locked until June 2024.

SpaceX (NASDAQ: SPCX) is facing significant market challenges as the company aborted its second upgraded Starship rocket launch attempt on Thursday, shortly after the stock price fell to an all-time low of about $131. Following its June IPO, which raised $85.7 billion, nearly all of the 13.2 billion shares are currently locked up. The first major tranche of 911.5 million shares will be available for sale the trading day after the earnings release, potentially exceeding the total shares offered during the IPO.

As of now, SpaceX has a market value around $1.7 trillion, which reflects an astonishing valuation of nearly 90 times its revenue over the past year, despite significant annual losses in its operations.