SpaceX shares under pressure as lockup expiry fuels post-IPO concerns

On Thursday, SpaceX shares fluctuated as investors evaluated the consequences of sales on the stock which has experienced volatility since its IPO.

Meanwhile shares of billionaire Elon-Musk led company were last trading 0,8% higher at $109.10 after falling as much as 2.9%.

SpaceX has a strange configuration under which up to 20% of limited shares could be sold starting today, the first trading day following its second-quarter earnings.

Analysts’ fear of reduced share value could intensify pressure on the stock. Notably, the end of the lock-up period does not require insiders to sell but such events are generally viewed with caution.

In this connection, market analyst at ActiTrades, Carolane de Palmas said: “Employees and early investors might want to secure their profits or invest in other opportunities.”

“Even without heavy selling, the increase in available shares is likely to keep volatility elevated.”

SpaceX is at a capitulation point after a sharp drop left its shares plummeting below their $135 IPO price for weeks. This follows a sharp reversal from June when a stock surge jolted company valuation close to $3 trillion surpassing Microsoft.

Investors are still concerned that the company remains a rare opportunity, yet they contend that it offers sustainable long-term value.