More than 900 million SpaceX shares unlock today. Here’s what to know
CNN • • general
Key Points:
- Over 900 million SpaceX shares will unlock on Thursday, more than doubling the publicly available stock and potentially exerting downward pressure on the share price, which recently hit an all-time low.
- The stock dropped nearly 14% on Wednesday amid concerns over high AI-related capital expenditures and anticipation of the lockup expiry, which allows early investors and employees to sell shares.
- SpaceX's IPO on June 12 was historic but initially released less than 5% of its total shares; the upcoming unlock is the first in a staggered schedule that could bring billions more shares to market over the next year.
- The increase in publicly tradable shares will likely raise SpaceX's weighting in the Nasdaq 100 index from about 1% to potentially over 3.5% after the September rebalance, depending on stock performance.
- Despite short-term volatility from share unlocks, investors emphasize that the company’s long-term value depends on SpaceX’s business fundamentals and Elon Musk’s continued execution of its vision.
