Despite concerns that the increased supply of stock could weigh on the company's valuation, SpaceX shares edged 1.4 per cent higher to $109.86 in heavy midday trading, with more than $23 billion worth of shares changing hands. The session was on course to become the company's busiest since the day before its inclusion in the Nasdaq-100 Index on July 7.
Millions of Shares Enter the Market
Although SpaceX completed the largest initial public offering (IPO) in U.S. history, less than five per cent of its total shares were made available for public trading at the time of the listing.
That is now beginning to change.
With the first lockup restriction expiring, rank-and-file employees and some early investors are now permitted to sell approximately 911.5 million shares, adding to the roughly 639 million shares that were already available following the IPO.
Additional lockup periods are scheduled to expire over the coming months. By December 8, the proportion of SpaceX shares available for public trading is expected to increase to about 40 per cent of the company.
The remaining 60 per cent, including the substantial stake held by founder and Chief Executive Officer Elon Musk, will remain locked until the middle of 2027.
Investors Remain Cautious
Lockup expirations are closely watched by financial markets because they can increase the supply of shares available for trading, potentially putting downward pressure on stock prices.
While insiders are not obligated to sell once restrictions expire, analysts say the possibility alone often creates uncertainty.
Carolane de Palmas, a market analyst at ActivTrades, said some early shareholders may choose to cash in on recent gains.
"Employees and early investors might want to secure their profits or invest in other opportunities."
She added that even without widespread selling, the additional shares could keep the stock volatile.
"Even without heavy selling, the increase in available shares is likely to keep volatility elevated."
Stock Under Pressure After IPO
Thursday's modest gains come after a difficult period for SpaceX shareholders.
The company's stock fell about 14 per cent on Wednesday following its latest quarterly earnings report, which highlighted significant operating losses and outlined plans for substantial spending on artificial intelligence infrastructure.
Investor concerns over those costs have contributed to a sustained decline in the company's share price.
SpaceX has now traded below its $135 IPO price for three consecutive weeks, reversing the strong momentum it enjoyed shortly after listing in June, when its market valuation briefly approached $3 trillion, placing it alongside the world's most valuable technology companies, including Microsoft and Amazon.
Since its stock market debut on June 12, SpaceX shares have fallen by more than 25 per cent, even as broader technology stocks have continued to advance.
During the same period, the Nasdaq Composite Index has gained about 2 per cent, while the Roundhill Magnificent Seven ETF, which tracks several leading U.S. technology companies, has risen 4.8 per cent.
Long-Term Confidence Remains
Despite recent market weakness, some analysts and investors believe the company's long-term growth prospects remain intact.
Micah Walter-Range, a space industry specialist involved in developing the index tracked by the Procure Space ETF, said SpaceX's track record of innovation continues to inspire confidence.
"A company that has successfully achieved incredible efficiencies in both launch and satellites, and it is already applying that mentality to building AI infrastructure."
Long-term investors also remain optimistic that the recent volatility does not change the company's broader outlook.
Phillip Lord, Chief Executive Officer of Bitcoin Japan and an investor in SpaceX, said his firm's investment strategy extends well beyond short-term market movements.
"We invested in SpaceX for the long term. This is a 10-year trade for us."
He dismissed concerns over short-term fluctuations, adding:
"You're worried about 5%, 10% or 20% potential downside on a stock move. This guy's disrupting the world."
Looking ahead, Elon Musk has projected that SpaceX could generate $1 trillion in annual revenue by 2030, reflecting the company's ambitious plans across space exploration, satellite communications and artificial intelligence infrastructure.
As additional lockup periods expire in the months ahead, investors will be closely watching whether increased share availability triggers further selling pressure or creates fresh opportunities for long-term buyers.