SpaceX The stock price is facing selling pressure because more shares held by employees and early investors are now available for trading. Despite the company's strong third-quarter performance, which showed revenue of $14.6 billion and profits of $4.4 billion, the stock price has still declined.
The main concern comes from the unlocking of over 1 billion shares that were previously restricted. These shares became eligible for sale on October 22nd and, based on the stock price on that day, are valued at nearly $190 billion. On that day, the stock price of SpaceX fell by more than 9%, with trading volume approaching 200 million shares.
How does the lifting of share restrictions affect the SPCX stock?
When SpaceX went public in June, most of the shares held by employees and early investors could not be sold immediately. The company subsequently arranged a timeline to gradually lift the trading restrictions on these shares.
The lifting of restrictions in October this time is the largest to date. Although shareholders can now sell their shares, it does not mean that they have sold all of their holdings.
Some insiders have already started selling. President Gwynne Shotwell sold approximately $52 million worth of shares on September 22 through a transaction plan arranged in June.
When will the next SpaceX share unlocking occur?
December 8th is an important date that investors will need to pay attention to next. According to the conditions in the IPO prospectus, there may be nearly 800 million shares that will become available for trading at that time.
Subsequent lifting of restrictions is expected to occur in March and May 2027, as well as after the release of future financial reports. By June 12, 2027, Elon Musk may also be eligible to sell up to 6.4 billion shares, including options.
SPCX Price Forecast
The analysts have set an average target price of $257, with a highest target price of $800. On October 26th, Bernstein raised the target price to $268.
However, SpaceX still faces valuation concerns. At the close of trading last Friday, the company's market value was approximately $1.8 trillion, and its stock price was about 50 times its expected earnings for next year.
Currently, investors are paying attention to the share unlocking on December 8th, observing whether early shareholders will sell their holdings, and whether the additional supply will further put pressure on the price of SpaceX.
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