SpaceX shares traded below their initial public offering (IPO) price on Wednesday, reaching a low of $132.15 before closing at $135.27. The company went public on June 11 at $135 per share, raising a record $75 billion. The current stock price represents a 33% decline from its record close shortly after the IPO. Despite the drop, SpaceX maintains a market capitalization of approximately $1.8 trillion.
The recent decline precedes the expiration of several lockup agreements, which currently restrict insiders, employees, and early investors from selling their shares. In early August, following the company's first quarterly earnings report, rank-and-file employees and certain investors will be eligible to sell 911.5 million shares. This volume exceeds the $86 billion worth of shares currently available for trading on the Nasdaq.
Financial analysts noted that SpaceX's stock is currently valued at 49 times expected revenue, which is high compared to other companies like Tesla, which trades at 15 times revenue. Of 32 analysts tracked by LSEG, 27 maintain a "buy" rating, citing the company's Starlink internet service and government launch contracts as primary value drivers despite a reported net loss of $5 billion last year.
Further lockup expirations through December 8 are expected to increase the tradable float to 40% of the company's total shares. The remaining 60%, which includes Elon Musk's personal stake, is scheduled to remain locked until mid-2027. Market analysts, including Jay Hatfield of Infrastructure Capital Advisors, suggested the upcoming increase in share supply could contribute to continued price volatility.