SpaceX investors free to unload $101B in stock amid slump
SpaceX faces a major test as $101 billion in insider stock becomes tradable Thursday. Over 900 million shares will become available, more than doubling the roughly 639 million available now. The phased, nine-stage lockup structure aims to soften potential selling waves but adds complexity for investors who are still holding on to SpaceX shares, which now sit below the $135 IPO price and have plunged since June. "We're in uncharted waters," one investment manager tells WebNovare. With additional unlocks through December, trading conditions will likely remain unsettled.
SpaceX faces a significant test on Thursday as $101 billion worth of insider stock becomes eligible for trading. More than 900 million shares will enter the market, more than doubling the approximately 639 million shares currently available.
The company structured the lockup release in nine phases to help moderate potential waves of selling. While the staggered approach is intended to reduce sudden pressure, it also introduces added complexity for investors.
SpaceX shares are currently trading below the $135 IPO price and have declined sharply since June. Many shareholders who held through the post-IPO period are still underwater on their positions.
“We’re in uncharted waters,” one investment manager told Bloomberg. The large volume of newly tradable stock creates uncertainty about near-term price movements.
Additional unlocks are scheduled through December, suggesting that trading conditions may remain volatile for several months. Investors will be closely monitoring how the market absorbs the increased supply of shares.
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