SpaceX Shares Rise as First Major IPO Lockup Expires

SpaceX shares rose after the first major post-IPO lockup period expired.

SpaceX shares have been volatile since the company's IPO as investors adjust to a rapidly expanding public float. [Photo: SpaceX X]

Shares of the Elon Musk-led company have been on a wild ride since reaching a closing high of $201.80 on June 16 following its IPO, and had subsequently fallen about 30% from that record, Patrick O’Donnell and Anita Hamilton reported for Barron’s Daily.

Wall Street had been bracing for severe selling pressure when SpaceX’s first lockup expiration freed roughly 911 million restricted insider shares. But a massive wave of insider selling failed to materialize.

That caught short sellers off guard, triggering short-covering and dip-buying by sidelined investors.

Before the unlock, only about 5% of SpaceX shares were freely tradable on the open market, contributing to severe illiquidity and high volatility. The additional shares increased the public float substantially, allowing large institutional investors to build positions more easily.