Shares decline 1.3% as early investors gain ability to sell up to 20% of restricted stock following the company’s IPO.
SpaceX shares fell 1.3% to $106.45 on Thursday as investors anticipated potential selling pressure from a partial lockup expiry. The company allowed early investors and employees to sell up to 20% of restricted shares starting the second trading day after its second-quarter earnings release, an unusual arrangement compared to standard 180-day lockups.
Typically, lockup periods restrict insider sales for months to stabilize post-IPO stock performance. Analysts caution that even modest selling could increase volatility, as shareholders may seek to secure gains or reallocate capital. The stock has faced turbulence since its public debut, adding to concerns over near-term pressure.
Market reaction reflected cautious sentiment, with the decline signaling investor unease ahead of the lockup expiry. While insiders are not obligated to sell, the expanded supply of shares is expected to weigh on trading dynamics.