SpaceX stock faces pressure from unlocked shares

In Short:
– Early SpaceX investors can sell shares as lockup expires, affecting stock price already down over 50%.
– More shares will unlock soon, with one investor planning to sell to secure profits from significant gains.

Early SpaceX investors can sell a portion of their shares as lockup restrictions expire, potentially impacting the stock price, which is already down over 50% from its mid-June peak.Approximately 911 million shares, representing 7% of outstanding shares, will become tradable, exceeding the 639 million shares sold during the company’s IPO.

Elon Musk’s venture reached a stock price of $150 upon hitting the Nasdaq in June, rising past $225 shortly thereafter, but has since fallen to $108.27, following a disappointing earnings report.

Greg Martin of Rainmaker Securities indicated that the lifting of the lockup may influence the stock’s direction more than financial fundamentals.

More shares are set to unlock soon, with an additional 319 million shares due on August 20, followed by around 700 million in September and October.

Musk holds over 6 billion shares, which are locked until June 2027.

Falcon 9’s first stage has landed on the A Shortfall of Gravitas droneship pic.twitter.com/VUSaoAg08v

— SpaceX (@SpaceX) August 5, 2026

Analysts at Mizuho commented that while the unlocking creates potential supply, it does not guarantee that all shares will flood the market.

One notable investor, Jessie Bates III, plans to sell his shares to secure profits, having bought in 2022.

Bates acquired shares valued at $127 billion for about $150,000, with his stake now potentially worth over $1.5 million as SpaceX’s current valuation is $1.43 trillion.

Michael Ledo, managing Bates’ investments, noted the focus on wealth-building for athletes and highlighted Bates’ investments in companies like OpenAI and Turo.

Bates indicated that strategic acquisitions could influence his decision to reinvest in SpaceX, especially following recent mergers.

Stock lockup expires

Recent developments indicate that shares may impact SpaceX’s market performance in the near term.

SpaceX’s strategic moves, including mergers, may play a key role in future investor confidence.

The overall market reaction to the unlocked shares will be closely monitored as SpaceX navigates this phase.