SpaceX shares rose in heavy trading on Thursday after the first in a series of lockup expiries more than doubled the number of shares available for public trading, even as investors remained cautious about the potential for increased selling pressure, according to a Reuters report.
The SpaceX shares rose more than 6% on Thursday, with more than $23 billion worth of shares changing hands. The session was on track to become the company's busiest since it joined the Nasdaq 100 index on July 7.
Although SpaceX's initial public offering was the largest in U.S. history, less than 5% of its total shares were made available for trading at the time of listing. The first lockup expiry now allows employees and certain early investors to sell about 911.5 million shares, in addition to the roughly 639 million shares that were already part of the public float.
Reuters reported that additional lockup restrictions scheduled to expire through December 8 will increase the company's freely tradable shares to about 40% of its total outstanding stock. The remaining 60%, including Elon Musk's stake, is expected to remain locked until mid-2027.
The stock has struggled since its market debut and had fallen about 14% on Wednesday after its first quarterly earnings report as a listed company heightened concerns over operating losses and the company's plans for heavy spending on artificial intelligence infrastructure.
Market participants often view lockup expiries as a potential source of downward pressure on stock prices because they increase the number of shares that can be sold, even though insiders are under no obligation to sell.
SpaceX is also grappling with fragile investor sentiment after a sharp decline from its post-listing highs. The shares have traded below their IPO price of $135 for three consecutive weeks, marking a significant reversal from June, when the stock rally briefly pushed the company's valuation close to $3 trillion, surpassing Microsoft and Amazon.
Concerns over the costs of expanding AI infrastructure, including investments in data centres and semiconductor hardware, have also weighed on sentiment following the company's earnings disclosure.
Since its June 12 debut, SpaceX shares have fallen by more than 25%, underperforming the broader technology sector. Over the same period, the Nasdaq Composite has gained about 2%, while the Roundhill Magnificent Seven ETF has advanced 4.8%, according to Reuters.
Despite the recent weakness, some investors remain optimistic about the company's long-term growth prospects, citing its leadership in commercial space launches, satellite services and ambitions in artificial intelligence infrastructure. Reuters reported that some long-term shareholders continue to view recent volatility as part of a broader investment horizon rather than a shift in the company's long-term potential.
Elon Musk has previously said he expects SpaceX to generate $1 trillion in annual revenue by 2030, underscoring the company's ambitious growth targets.
