NEW YORK — SpaceX shares climbed on Thursday after the expiration of the company's first post-initial public offering lock-up period more than doubled the number of shares available for public trading, easing concerns that a wave of insider selling would immediately weigh on the stock.
The stock rose about 6% during the session, recovering part of the sharp decline recorded a day earlier as investors positioned for the increase in tradable shares and digested the company's latest quarterly results. Despite the rebound, the shares remained well below both their post-listing highs and the June IPO price.
Thursday marked the first major release of restricted shares since SpaceX's record-breaking public listing in June. Approximately 912 million additional shares became eligible for trading, increasing the publicly tradable float by more than 140%, according to regulatory filings and market reports. The newly eligible shares are largely held by employees, early investors and other insiders whose holdings had been subject to lock-up restrictions following the IPO.
Analysts said investors had widely expected the expiration to trigger selling pressure because the company floated only a small portion of its total shares during the IPO, leaving the market with a relatively limited supply of stock. Instead, the initial market reaction suggested many investors had already priced in the increased supply or viewed the sell-off in previous sessions as excessive.
The lock-up release follows SpaceX's second-quarter earnings report, in which the company posted a quarterly loss that was smaller than analysts had expected while reporting strong year-over-year revenue growth. Investors, however, remained focused on rising spending tied to artificial intelligence initiatives and infrastructure expansion, factors that had contributed to volatility in the stock after the earnings announcement.
The company adopted a staggered lock-up schedule rather than allowing all restricted shares to become tradable at once, a structure intended to spread potential selling over several months. Additional lock-up expirations are scheduled later this month and over the following quarters, subject in some cases to price-related conditions outlined in the IPO documentation.
Market participants said future trading sessions will provide a clearer indication of whether employees and early investors choose to sell significant portions of their holdings as additional shares become eligible for trading under the company's phased release schedule.
