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SpaceX Faces Significant Share Unlocking Today
SpaceX, the aerospace company founded by Elon Musk, is set to experience a significant event today as up to 328.4 million shares become eligible for sale following a lockup expiration. This change allows certain employees and early investors to sell shares that were previously restricted after the company's initial public offering (IPO). While this development raises questions about potential stock price fluctuations, it does not guarantee that all eligible holders will sell their shares, as some may choose to take profits or continue holding their investments.
The average daily trading volume for SpaceX is approximately 92.3 million shares, meaning today's unlock represents a substantial potential supply, roughly 3.6 times the daily turnover. However, the actual amount of selling that will occur remains uncertain. Another tranche of 328.4 million shares is scheduled to become eligible on October 24, with a larger batch of up to 1.3 billion shares expected to be unlocked shortly after the release of third-quarter results.
Since its IPO on June 12, SpaceX's stock has experienced significant volatility. After an initial surge from the IPO price of $135 to a high of $225.64, the stock subsequently fell to a low of $104.83 in early August. Currently, the stock is trading around key technical levels, with the 100-hour moving average at $155.96 and the 200-hour moving average at $152.09. These levels are critical for traders, as a drop below them could indicate a shift in market control towards sellers. Conversely, reclaiming the midpoint of the trading range at approximately $165.24 could signal a more favorable outlook for buyers.
Source: KLEA News