Early shareholders could sell shares after the lockup expires, potentially pressuring SpaceX stock following its $1.7 trillion valuation IPO.
SpaceX’s upcoming IPO on June 12 could see early investors sell shares once the lockup period ends, despite the company’s valuation surging from $350 billion to a potential $1.7 trillion. Private market backers, including Ark Invest’s Ark Venture Fund, may seek to lock in gains after years of holding.
Lockup periods are standard for IPOs to prevent immediate sell-offs by early investors, which could destabilize the stock. SpaceX’s valuation growth has been rapid, raising expectations for post-IPO volatility as shareholders weigh profit-taking against long-term confidence.
While no specific sales plans have been disclosed, the sheer scale of gains could drive significant selling pressure once restrictions lift.