First earnings report triggers staggered lockup release, potentially flooding market with up to 20% of previously restricted shares.
SpaceX (NASDAQ: SPCX) shares, currently trading at $185, face a critical test in late July when the first lockup expiration coincides with its earnings report. The company’s $75 billion IPO priced at $135 on June 11, with shares peaking above $200 before retreating to current levels.
Only 5% of SpaceX was floated in the IPO, leaving 95% locked up. A staggered release allows eligible holders to sell up to 20% of restricted shares post-earnings, with an additional tranche unlocked if the stock trades 30% above the $135 offer price—currently met at $175.50.
The thin float has amplified volatility, but the upcoming lockup expiry could introduce significant selling pressure, testing the stock’s resilience.