SpaceX stock falls as large share unlocks add selling pressure

Selling pressure from newly tradable shares

Coinpedia reports that SpaceX stock is falling because more shares owned by employees and early investors are becoming available for trading. The article says this pressure is showing up even though SpaceX posted strong third-quarter results, with $4.4 billion in profit on $14.6 billion in revenue.

October 22 unlock and stock move

According to Coinpedia, the main source of concern is the release of more than 1 billion shares that had been restricted before. These shares became eligible for sale on October 22 and were worth nearly $190 billion based on that day’s price. Coinpedia says SpaceX stock dropped more than 9% on that date, and nearly 200 million shares traded.

How the share unlock process works

The article says that when SpaceX went public in June, most shares held by employees and early investors were not immediately saleable. SpaceX then set up a schedule to gradually open those shares for trading. Coinpedia notes that the October release was the largest so far, but eligibility to sell does not mean holders have sold all of their shares.

Insider selling already reported

Coinpedia also says some insiders have already sold shares. It cites SpaceX President Gwynne Shotwell, who sold about $52 million in shares on September 22 through a trading plan arranged in June.

Next dates investors are watching

The next key date mentioned is December 8. Coinpedia says that, depending on conditions in the IPO prospectus, nearly 800 million more shares could become tradable then. The article adds that more releases are expected in March and May 2027, as well as after future earnings reports. It also says Elon Musk could become eligible on June 12, 2027, to sell up to 6.4 billion shares, including options.

Valuation concerns and analyst targets

Coinpedia says analysts have an average price target of $257, with the highest target at $800. Bernstein raised its target to $268 on October 26. The article says SpaceX’s market value was about $1.8 trillion at Friday’s close, and the stock was trading at nearly 50 times expected earnings for next year. For now, Coinpedia says investors are focused on the December 8 unlock to see whether early shareholders sell and whether the added supply puts more pressure on the stock.