SpaceX shares came under additional pressure on Thursday, August 6. The first lockup period for early investors expired, potentially making more than 911 million shares available for sale. This happened against the backdrop of a sharp decline in the stock price following the company’s first quarterly report, published two days earlier.
First Earnings Report and Share Price Decline
Elon Musk’s rocket and space company published its first quarterly report as a public company on August 4. Revenue exceeded analysts’ expectations, while adjusted EBITDA also came in above forecasts.
However, the market’s attention was drawn to nearly $16 billion in capital expenditures on AI infrastructure, including data centers. The figure was more than twice the company’s quarterly revenue. Shares, which had surged as high as $225.64 in June, later fell below the IPO price of $135 and closed at $108.27 on Wednesday, August 5.
Retail Investors Continue Buying
Despite the decline, retail investors have consistently bought more SpaceX shares than they sold since the company went public on June 12. According to Vanda Research, on Wednesday, following the publication of the report, retail investors purchased $22.7 million worth of shares during the first hour of trading alone. That was three times the usual level.
During the first five sessions after the IPO, retail investors bought $405 million worth of shares. Over the five sessions preceding the earnings report, that amount fell to $103 million, but the balance still remained in favor of buying. Vanda Research suggested that retail investors may view SpaceX not only as a space company but also as a bet on the potential of artificial intelligence.
A Wave of New Supply
The first lockup period has now expired—the period following an IPO during which early investors are prohibited from selling their shares. More than 911 million shares potentially became available for sale. That is approximately 7% of the company’s total shares outstanding.
For comparison, 639 million shares were offered to investors during the IPO. Mizuho analysts caution that shares becoming eligible for sale does not mean the entire block will automatically enter the market. According to the prospectus, another 319 million shares could potentially be unlocked on August 20, while additional tranches of roughly 700 million shares each are expected in September and October.
One notable example is Atlanta Falcons player Jessie Bates III. In 2022, he invested about $150,000 in SpaceX shares when the company was valued at $127 billion. At SpaceX’s current valuation of $1.43 trillion, his stake could be worth more than $1.5 million.
Through his representative, Bates told CNBC that he plans to sell all of his shares as soon as he is allowed to do so. However, Bates’s shares remain locked up until June 2027.
