SpaceX stock faced selling pressure as more shares held by employees and early investors became available for trading, even after the company reported strong third-quarter results.
Share Unlock Drives Decline
The main concern was the release of more than 1 billion previously restricted shares. These shares became eligible for sale on October 22 and were worth nearly $190 billion at that day’s price. SpaceX stock fell more than 9% that day, with nearly 200 million shares changing hands.
When SpaceX went public in June, most shares held by employees and early investors could not be sold immediately. The company introduced a schedule to gradually make these shares available. The October release was the largest so far. Although shareholders are now allowed to sell, it does not mean they have sold all their shares.
Insider Sales and Upcoming Unlocks
Some insiders have already sold. SpaceX President Gwynne Shotwell sold approximately $52 million worth of shares on September 22 through a trading plan arranged in June.
December 8 is the next important date for investors. Depending on the conditions in the IPO prospectus, nearly 800 million additional shares could become available for trading. Further releases are expected in March and May 2027, as well as after upcoming earnings reports. On June 12, 2027, Elon Musk could also become eligible to sell up to 6.4 billion shares, including options.
Analyst Targets and Valuation Concerns
Analysts have an average price target of $257, while the highest target stands at $800. Bernstein raised its target to $268 on October 26.
However, SpaceX still faces valuation concerns. Its market value stood at approximately $1.8 trillion at Friday’s close, with the stock trading at nearly 50 times expected earnings for next year.
For now, investors are watching the December 8 share unlock to see whether early shareholders sell their holdings and whether the additional supply puts further pressure on SpaceX stock.
