SpaceX Stock Dips As $100 Billion Share Unlock Looms

Space Exploration Technologies Corp stock fell more than 6 percent on August 5, dropping to $114.39 even after the company delivered a strong debut quarter. The sudden price drop happened because shareholders expect a massive unlock of over 100 billion dollars in shares.

A total of 911.5 million shares held by early investors and employees will become tradable. This event is part of the initial public offering prospectus filed with the United States Securities and Exchange Commission. Because the stock is trading around $114.39, this upcoming unlock is valued at approximately 104 billion dollars, which will increase outstanding shares by nearly 7 percent.

SpaceX chose not to release an additional 455.8 million shares because the stock price did not stay 30 percent above the IPO price during the recent earnings period. The next major share unlock is scheduled for late October or early November following the second earnings report. Traders are watching closely to see if the sudden increase in tradable shares brings more downward pressure on the price in the near term.