SpaceX Shares Fall Below IPO Price Ahead of Lockup Expiry

SpaceX shares fell below their $135 offering price in July, while the number of shares available for trading is expected to rise significantly in early August.

The stock dropped as low as $132.15 on Wednesday before closing at $135.27. It has fallen 33% from its record close shortly after the initial public offering. Even so, SpaceX remains one of Wall Street’s most valuable companies, with a market capitalization of roughly $1.8tn.

The company made less than 5% of its shares available when it went public, but restrictions on sales by employees, insiders and early investors will begin to expire in the coming months.

Of the 32 analysts covering SpaceX, 27 recommend buying the shares, one recommends selling and four have neutral ratings.

On the second trading day after SpaceX publishes its first quarterly report, expected in early August, 911.5 million shares will become eligible for sale. By 8 December, the company’s freely tradable shares could rise to 40%, while the remaining 60% – including Elon Musk’s stake – will remain locked up until mid-2027.

(Reuters, bak)