SpaceX Shares surge as lockup expiry more than doubles public float

SpaceX shares rose on Thursday as the number of publicly tradable shares more than doubled after the first major lockup period expired.

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The stock gained 1.4% to $109.86 in midday trading. More than $23 billion worth of shares changed hands, putting the session on track to become the company’s busiest since its Nasdaq-100 debut on July 7.

Lockup expiry expands share supply

SpaceX made fewer than 5% of its shares available when it completed its record US initial public offering.

However, several restrictions on employees, insiders and early investors will expire over the coming months.

Thursday marked the first major release. About 911.5 million shares became eligible for sale by rank-and-file employees and some early investors.

The IPO had already placed roughly 639 million shares into public trading.

Further lockup expiries through December 8 could increase SpaceX’s public float to about 40% of the company.

The remaining 60%, including Elon Musk’s stake, will remain restricted until mid-2027.

Investors watch for selling pressure

SpaceX shares have fallen since the company’s market debut. The stock dropped about 14% on Wednesday after its quarterly results raised concerns about heavy operating losses and planned spending on artificial intelligence infrastructure.

Investors often view lockup expiries cautiously because newly available shares can increase selling pressure.

However, the expiry does not require shareholders to sell.

“Employees and early investors might want to secure their profits or invest in other opportunities,” said Carolane de Palmas, a market analyst at ActivTrades.

She added that the larger supply of tradable shares could keep volatility elevated even without heavy selling.

SpaceX faces tougher investor sentiment

SpaceX now faces a significant shift in investor sentiment.

The stock has traded below its $135 IPO price for three consecutive weeks. That marks a sharp reversal from June, when its rally briefly pushed the company’s valuation close to $3 trillion.

The company also disclosed major AI-related expenses in its first earnings report as a public company. Those costs have raised questions about spending on data centres and advanced chips.

Since its June 12 debut, SpaceX shares have lost more than a quarter of their value. By comparison, the technology-heavy Nasdaq Composite has gained about 2%.

The Roundhill Magnificent Seven ETF has risen 4.8% over the same period.

Long-term outlook remains a focus

Despite the recent decline, some investors remain confident in SpaceX’s long-term prospects.

Micah Walter-Range, a space industry specialist, said the company had achieved major efficiencies in rocket launches and satellite operations. He added that SpaceX was applying the same approach to its AI infrastructure plans.

Other investors also see the company as a long-term opportunity.

“We invested in SpaceX for the long term. This is a 10-year trade for us,” said Phillip Lord, CEO of Bitcoin Japan, which has invested in SpaceX.

Lord said investors should focus on Musk’s broader ambitions rather than short-term share price movements.

Musk has previously said SpaceX could generate $1 trillion in revenue by 2030.