🚨 #SpaceX faces its biggest test yet.
Up to 911.5 million shares held by employees and early investors become eligible for sale starting tomorrow, two trading days after the company's first ever earnings report.
That is roughly $123 billion worth of shares at recent prices, close to 68 times the typical size of a large-cap lockup expiry, hitting a stock where only about 4 to 5% of shares have been publicly tradeable since the June IPO.
The stock is already down more than 30% from its post-IPO high near $225.
More tranches follow through the rest of the year: five smaller time-based releases from late August through late October, a larger roughly 28% release tied to Q3 earnings, and the full remaining lockup expiring December 8.
Not every insider is expected to sell immediately, and some analysts note the stock has room to rebound if demand holds. But a sudden increase in available supply against uncertain demand is historically one of the more reliable pressure points for a newly public stock.
Not financial advice. Do your own research.$SPACE
Up to 911.5 million shares held by employees and early investors become eligible for sale starting tomorrow, two trading days after the company's first ever earnings report.
That is roughly $123 billion worth of shares at recent prices, close to 68 times the typical size of a large-cap lockup expiry, hitting a stock where only about 4 to 5% of shares have been publicly tradeable since the June IPO.
The stock is already down more than 30% from its post-IPO high near $225.
More tranches follow through the rest of the year: five smaller time-based releases from late August through late October, a larger roughly 28% release tied to Q3 earnings, and the full remaining lockup expiring December 8.
Not every insider is expected to sell immediately, and some analysts note the stock has room to rebound if demand holds. But a sudden increase in available supply against uncertain demand is historically one of the more reliable pressure points for a newly public stock.
Not financial advice. Do your own research.$SPACE