SpaceX Shares Struggle as Lockup Expiration Looms

Trading on Wednesday saw the stock dip to 132.15 dollars before a marginal recovery to 135.27 dollars. This performance marks a sharp departure from the initial excitement surrounding the historic public offering, which saw demand drive the company’s valuation to staggering heights. The core of the current pressure lies in the upcoming release of 911.5 million shares, as insider lockup restrictions begin to lift following the latest earnings cycle.

Despite a 5 billion dollar net loss reported last year, market sentiment remains divided. Bullish investors continue to price the firm at 49 times expected revenue, betting heavily on the long-term profitability of the Starlink satellite network and consistent government contracts. Whether these revenue streams can offset the dilution risks posed by the impending supply of new shares remains the central question for institutional stakeholders.