SpaceX insiders won the right to sell 911.5 million shares worth roughly $100 billion on Thursday, more than doubling the float of Elon Musk's newly public company.
Key Points:
- Up to 911.5 million shares became eligible for sale, lifting the freely tradable portion of the company to 11.8% of shares outstanding from 4.9%.
- A separate block of 455.8 million shares stayed locked because the stock trades below its $135 offering price.
- Shares held near flat in early trading on Thursday, a day after a slide that left them more than 50% below their June peak.
SpaceX Lockup Expiration Terms
The restrictions lapsed on the second full trading day after the rocket and satellite maker released its first quarterly results as a listed company.
The tranche covers up to 20% of eligible insider holdings and lifts the freely tradable slice of the business to 11.8% of shares outstanding from 4.9%.
That total runs 43% above the 638.9 million shares floated in June.
A separate block of 455.8 million shares stayed frozen because the price sits under the $135 mark set in that record listing. The prospectus sets out a nine stage release rather than one 180 day cliff, with about 5.33 billion shares eligible by early December.
Musk, the world's richest person, holds more than 6 billion shares and cannot sell until June 2027.
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Analyst Views On Share Supply
Mizuho analyst Brett Linzey argued that eligibility is not the same as supply, and that the whole tranche will not necessarily be offered into the market, in a research note published on Wednesday. Bank of America's Ron Epstein called the expiration near term technical pressure rather than a verdict on the business.
Early backers now face a real decision. Jessie Bates III, a safety for the Atlanta Falcons, paid about $150,000 in 2022 for a stake at a $127 billion valuation, and his adviser also placed him in OpenAI and Anthropic.
He said through a publicist that he plans to sell the entire holding, which is worth more than $1.5 million at the company's current $1.43 trillion valuation.
Short sellers have already built positions equal to 35% of the available float, and nearly 93 million shares changed hands in the first half hour of trading on Thursday, roughly 40% of the prior session's full volume. Financial adviser Evan Mills, who works with SpaceX employees, called it their first real chance to spend paper wealth.
SpaceX Stock Since June IPO
SpaceX listed on the Nasdaq in June at $135 and hit a record $225.64 on Jun. 16. Shares closed Wednesday at $108.27, more than 50% below that peak and its second worst session on record, after the company reported $7.8 billion in quarterly revenue against $18.37 billion in capital spending. The stock traded near flat on Thursday morning, and its Nasdaq 100 weighting could rise well above the current 1% when the index rebalances in September.
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