SpaceX shares edged higher on Thursday as a lockup period covering insider holdings came to an end, according to Barron's. The expiration frees up millions of shares for trading, and the publication warns that the added supply could fuel further price swings.
The lockup, which began after SpaceX's initial public offering, restricted company insiders and early investors from selling their stakes for a set period. With that restriction now lifted, those holders are free to sell, and Barron's reports that the market should brace for more volatility as a result. CNBC similarly noted that the first batch of shares to unlock since the IPO could put additional pressure on the stock.
Despite the potential for selling pressure, Bloomberg reported that SpaceX shares remained steady after the lockup expired, suggesting that investors did not immediately rush to exit their positions. The steady start stands in contrast to the warnings from analysts who had anticipated a bumpy ride.
The lockup expiration comes at a time when investor confidence in Elon Musk's broader ambitions appears to be wavering. The Economist reported that investors have fresh doubts about the CEO's grandiose plans, adding another layer of uncertainty to the stock's near-term outlook.
What to watch next: Whether the unlocked shares lead to a wave of selling in the coming sessions, or if the market absorbs the added supply without significant disruption.
