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SpaceX lockup expiry set to unlock about 911.5 million shares
SpaceX shares slid 7% the day before, as investors focused on the firm’s sixfold jump in AI-related capex to $18.4 billion in the second quarter.
SpaceX is set to face its first major lockup test as the initial IPO lockup period expires, enabling company insiders to sell shares for the first time. According to LiveMint Markets citing Reuters, insiders could sell up to roughly 911.5 million shares starting Thursday, with the staggered schedule designed to spread sales over multiple dates rather than releasing all restricted stock at once.
The lockup expiration comes just days after SpaceX reported its first quarterly earnings as a public company. In that report, the company said capital expenditures rose sixfold to $18.4 billion in the second quarter, and LiveMint Markets notes that most of the spending was tied to artificial intelligence.
SpaceX’s lockup terms included an early-release clause that would have unlocked an additional 10% of shares if the stock traded at least 30% above its IPO price on at least 5 of the 10 trading days leading into its first earnings report. LiveMint Markets reports that this condition did not occur, meaning only the scheduled unlock applies.
LiveMint Markets also highlights that ending restrictions on some insiders could more than double the number of shares available, to as many as 1.55 billion shares from about 639 million shares currently, based on SpaceX’s IPO prospectus. The report adds that some insiders could still opt to sell even with the shares trading below the IPO price, potentially changing the supply investors see in the market.