SpaceX shares gained on Thursday as the number of publicly tradable shares more than doubled following the expiration of the company’s first lockup restrictions.
The stock rose 1.4% to $109.86 in heavy trading, with more than $23 billion worth of shares exchanged by midday. The session was on track to become SpaceX’s busiest trading day since the company’s addition to the Nasdaq 100 on July 7.
More SpaceX shares enter the public market
Although SpaceX completed the largest initial public offering in U.S. history, less than 5% of its shares were initially available for public trading.
A series of restrictions preventing additional stock sales by company insiders, employees and early investors are scheduled to expire over the coming months.
Thursday marked the first major release, allowing rank-and-file employees and certain early investors to sell 911.5 million shares, adding to the approximately 639 million shares already available through the IPO.
By December 8, the expiration of additional restrictions will increase SpaceX’s potential public float to around 40% of the company. The remaining 60%, including Elon Musk’s stake, will remain locked until mid-2027.
Stock faces pressure after earnings report
SpaceX shares have declined since the company’s market debut, falling around 14% on Wednesday after its quarterly results raised concerns about operating losses and significant spending plans for artificial intelligence infrastructure.
Lockup expirations are often viewed cautiously by investors because they increase the possibility of additional selling pressure. While insiders are not required to sell shares, employees and early investors may choose to secure gains or redirect capital elsewhere.
“Even without heavy selling, the increase in available shares is likely to keep volatility elevated,” said Carolane de Palmas, market analyst at ActivTrades.
Investor sentiment remains fragile
SpaceX is facing a critical period after a sharp selloff pushed its shares below the $135 IPO price for three consecutive weeks.
The decline represents a major reversal from June, when strong demand after the listing briefly pushed SpaceX’s valuation close to $3 trillion, allowing the company to surpass Microsoft and Amazon in market value.
Concerns over large artificial intelligence investments have also affected investor sentiment, particularly after SpaceX revealed significant spending on AI infrastructure, including data centers and advanced computing systems.
Since its June 12 debut, SpaceX shares have fallen more than 25%, while the technology-focused Nasdaq Composite has gained around 2%. The Roundhill Magnificent Seven ETF, which tracks major technology companies with longer public market histories, has risen 4.8% over the same period.
Long-term investors remain optimistic
Some investors argue that SpaceX’s long-term opportunities remain attractive, highlighting the company’s achievements in launch operations and satellite technology.
Micah Walter-Range, a space industry specialist who helped develop the index tracked by the Procure Space ETF, said SpaceX has demonstrated strong efficiency in launch and satellite operations and is applying a similar approach to artificial intelligence infrastructure.
“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.
Supporters of the company continue to focus on Elon Musk’s long-term vision, including his prediction that SpaceX could generate $1 trillion in revenue by 2030.
