SpaceX is set to lift restrictions on the sale of as many as 911.5 million shares worth about US$116 billion on Aug. 6, two days after reporting its first quarterly results since its June initial public offering (IPO).

Another 455.8 million shares could become eligible for trading after the earnings release if the stock reaches a price target tied to the IPO lock-up agreement.

By early December, the number of tradable shares is expected to increase to 5.33 billion, from about 639 million currently.

According to 22V Research, the lock-up expires in stages, with 20% of restricted shares becoming eligible for sale after earnings, followed by another 10% if the stock trades 30% above its IPO price. Additional 7% releases are scheduled around Aug. 21 and Sept. 10.

The staggered unlock comes as SpaceX’s public float remains limited, representing about 4.2% of outstanding shares. If insiders sell, the float could expand by about 900% by early September.

SpaceX shares closed at US$119.85, down 37% from their closing high on June 16. About 30% of currently tradable shares are held in short positions, according to S3 Partners.

The stock has retreated after a sharp rally following its IPO.

Analysts said a recent bond sale and the upcoming lock-up expirations have also weighed on sentiment, as larger share unlocks typically increase the supply of stock available for trading.

🔗 Source: Bloomberg