SpaceX shares surge 9% as 911.5 million shares hit market after lockup expiry

With SpaceX shares trading near their post-listing low, roughly 900 million shares became newly available on the market.

CNN and CNBC reported Thursday that the lockup period for SpaceX employees and early investors expired, freeing up 911.5 million shares for trading.

By comparison, SpaceX sold only 639 million shares — representing 5 percent of the total — during its initial public offering on June 12, meaning the lockup expiry more than doubles the number of shares available for trading.

Companies typically impose a 180-day lockup period after listing, but SpaceX plans to lift its restrictions in stages over the coming months, beginning Thursday.

According to Reuters, the share of SpaceX stock available for trading will rise to 40 percent of the total by Dec. 8. By mid-2027, the remaining 60 percent — including CEO Elon Musk's stake — will also become fully tradable.

Markets had been on alert for further share price declines following the lockup expiry.

SpaceX made its debut in the largest IPO on record and maintained a sharp rally immediately after listing. Its valuation at one point surpassed those of Microsoft and Amazon, a run that briefly made Musk the world's first trillionaire.

Within little more than a month, however, the bubble burst and the share price turned volatile. After reaching an intraday high of $225.64, the stock gave back all its gains and fell below the IPO price of $135. The sell-off deepened on Thursday, when shares fell 14 percent to close at an all-time low of $108.27.

The prospect of an additional 900 million shares entering the market had fueled concern that the stock could fall even further.

Instead, SpaceX shares rose 9 percent that day, closing at $114.92.

Business Insider reported that early investors are torn between holding their shares and cashing out. The recent sharp decline appears to have made many reluctant to sell.

Chris Dennert, 43, who invested $25,000 when the stock traded at $19 a share, said the lockup had been "killing" him and that he had wanted to sell before the price dropped. He said he would "wait and see," adding that he plans to sell all his shares if the price falls below $50, though he still sees significant upside potential.

Lance Brightstein, who bought $500,000 worth of SpaceX shares in 2024, said he would consider selling only if the stock rebounds to around $130. Philip Lord, CEO of Bitcoin Japan and a SpaceX shareholder, said he would not sell anytime soon. "We made a long-term investment in SpaceX — it's essentially a 10-year bet," he said.