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SpaceX shares rise about 18% for the week after earnings and lockup
The biggest lockup tranche let 911.5 million shares trade for the first time, lifting the freely tradable portion to 11.8% of shares from 4.9%, after the stock fell 13.6% post-earnings.
SpaceX’s stock extended late-week gains after two major potential headwinds in the same week, its first earnings as a public company and the largest initial public offering lockup expiration in its short trading history, according to Yahoo Finance. The shares were up around 18% for the week as the stock closed higher on Friday.
The week opened with SpaceX’s second-quarter results on Tuesday, which topped estimates, including revenue and adjusted EBITDA above expectations, but the stock still sold off. Following the earnings, the stock fell 13.6% on Wednesday and hit a new all-time closing low, with investor concern tied to AI capital expenditures rising to $15.8 billion in the quarter from $7.7 billion in Q1.
Thursday’s lockup expiration became the next stress test, when 911.5 million shares became eligible to trade for the first time, about 43% more than the 638.9 million shares the company floated in its June IPO. The unlock more than doubled the public float, raising the freely tradable portion to 11.8% of shares outstanding from 4.9%, and despite the added supply, the stock closed up 6.1%.
SpaceX’s lockup is staggered across nine tranches over several months, with Thursday’s tranche the first and largest. Morningstar analyst Nicolas Owens argued that the market may have already priced in dilution from the lockup, while Bank of America’s Ron Epstein described the near-term impact as a technical drag rather than a judgment on the business.