Elon Musk Backs SpaceX Stock Ahead of $104 Billion Unlock

Elon Musk recently agreed that SpaceX stock is a buying opportunity, offering a brief three word response on social media as the company's shares hit a record low of $104.83 on Monday. The stock managed to bounce back slightly to close at $114.53, up nearly six percent, though it still sits well below its IPO price and record highs. July was a tough month for the company despite successful Starship tests and new launch deals.

The real test for the market arrives this week with two major events. First, the company releases its latest earnings report on Tuesday. Second, a massive insider share lock up expiration hits on Thursday, freeing up to 911.5 million shares for trading. At current prices, that block is worth roughly $104 billion and will more than double the amount of shares currently available to the public.

Traders are feeling the pressure, with short interest jumping to 165 million shares as people prepare for the potential flood of selling. However, history offers some comforting precedent for tech bulls, as Facebook saw its stock rise during a major unlock in 2012 when insiders refused to sell at depressed prices. Major analysts like Morgan Stanley still hold high price targets for SpaceX, while other commentators suggest waiting until the dust settles from the unlock event.

Investors are keeping a close eye on Starlink subscriber numbers and actual earnings to justify the company valuation. While Elon Musk and prominent tech investors remain bullish on the long term vision, Thursday will show how early backers and employees choose to handle their newly freed shares.