SpaceX shares slip as lockup expiry adds to post-IPO woes

SpaceX shares fell 1.3% to $106.45 after an unusual arrangement allowed up to 20% of restricted shares to be sold, potentially exacerbating pressure on the stock.

SpaceX shares fell on ​Thursday, as investors braced ​for a potential ‌bout of ​insider stock sales that could heap fresh pressure on a company already ‌enduring a bumpy ride since listing. The shares were last trading down 1.3% at $106.45.

When a company goes public, certain shareholders - ‌typically executives, employees and early investors - are often restricted from selling ‌their shares for up to 180 days, to limit volatility and provide some long-term support to the stock. SpaceX, however, had an ⁠unusual ​arrangement under ⁠which up to 20% of the restricted shares could be sold starting ⁠Thursday, the second trading day after its second-quarter earnings release.

Analysts worry ​that the new supply of shares could exacerbate pressure on ⁠the stock. A lock-up expiration does not require insiders to sell, ⁠but ​such events are viewed cautiously. "Employees and early investors might want to secure their profits or invest in ⁠other opportunities," said Carolane de Palmas, market analyst at ActivTrades.

"Even without ⁠heavy ⁠selling, the increase in available shares is likely to keep volatility elevated."