SpaceX Gains 6% After 911.5 Million Shares Are Unlocked Without Heavy Selling
Summary
- SpaceX shares rose more than 6% even after 911.5 million locked-up shares held by employees and early investors were released.
- The lockup expiration roughly doubled the tradable float, but the market favored a wait-and-see stance over heavy selling.
- Starting Dec. 8, the share of stock available for trading will rise to 40% of the total, and by the middle of next year Elon Musk's stake is also scheduled to enter the market.
Forecast Trend Report by Period
SpaceX shares rose more than 6% even after lockup restrictions expired on about 911.5 million shares held by employees and early investors. The move suggested investors largely took a wait-and-see approach instead of rushing to sell.
Business Insider and other outlets reported on Aug. 7 that SpaceX closed up 6.14% at $114.92 in regular Nasdaq trading the previous day. The stock remains below its $135 initial public offering price from its June 12 debut, but the lockup expiration did not trigger a sharp wave of selling.
The lockup expiration significantly expanded the number of shares available for trading. At the IPO, only 639 million shares, or about 5% of the total, were released to the market. With this latest unlock, the tradable share count has roughly doubled.
Early investors also appeared reluctant to sell right away, choosing instead to watch how the stock performs. Early investor Chris Daenert said he bought SpaceX shares at about $19 apiece and would sell his entire stake if the stock fell below $50, but for now he plans to keep watching.
Additional lockup expirations are ahead. Reuters and CNBC reported that starting Dec. 8, the share of stock available for trading will increase to as much as 40% of the total. By the middle of next year, the remaining shares, including Elon Musk's stake, are scheduled to enter the market in stages.
YM Lee
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