Additional Coverage:
SpaceX Shares Unlock, Sparking Investor Interest and Potential Sales
On Thursday, the first lockup period for SpaceX expires, releasing approximately 911 million shares-about 7% of the company’s outstanding stock-into the market. This volume surpasses the 639 million shares sold during SpaceX’s record-breaking IPO, drawing close attention from Wall Street observers keen to see if insiders seize this opportunity to sell.
Since its Nasdaq debut in June, SpaceX’s stock initially surged to $150 and later topped $225. However, the past two months have seen a decline, with shares closing Wednesday at $108.27. The drop followed the company’s first earnings report, which revealed capital expenditures more than double the revenue, raising concerns among investors.
Market analyst Greg Martin of Rainmaker Securities suggested that the stock’s near-term performance might be influenced more by this influx of shares becoming tradable than by the company’s operational fundamentals.
Additional share unlocks are on the horizon, with 319 million shares potentially becoming available on August 20, followed by roughly 700 million shares in both September and October. Meanwhile, Elon Musk remains the largest shareholder, holding over 6 billion shares, which remain locked until June 2027.
Analysts at Mizuho caution that while the increase in shares available for sale is significant, not all newly unlocked shares are expected to flood the market immediately.
Among those planning to sell is Atlanta Falcons safety Jessie Bates III. Bates acquired his stake last year for around $150,000 when SpaceX was valued at $127 billion.
With the company’s current valuation soaring to $1.43 trillion, his shares could now be worth over $1.5 million. He plans to liquidate his entire position to “lock in gains,” according to a statement from his publicist.
Bates’ investments are managed by Michael Ledo, CEO of the RISE Family Office, which supports athletes in wealth building and business leadership. Bates has also held stakes in notable pre-IPO firms including OpenAI, Anthropic, and Databricks.
Looking ahead, Bates indicated he might consider reinvesting in SpaceX if the company pursues strategic acquisitions to fuel growth. Recent moves include a merger with Elon Musk’s xAI in February and an anticipated acquisition of Cursor for $60 billion, expected to finalize this quarter.
As SpaceX navigates this pivotal phase, the market will be watching closely to gauge the impact of these unlocked shares on the stock’s trajectory.