SpaceX (SPCX) completed its June 12 IPO, raising $85.7 billion including the underwriters' overallotment and valuing the company at $1.77 trillion, both record figures. According to the article, the prospectus allows some insiders to sell shares early at earnings- and time-based events through mid-December, while CEO Musk is not among them. After each quarterly report, up to 911.5 million shares became eligible for sale, including after the Q3 results released Oct. 20 that took effect on Oct. 22. Because calendar day 135 fell on a weekend, another 319 million shares were released today, Oct. 26. The author argues that with only about 555.6 million shares sold in the IPO, under 5% of outstanding shares, and a rising float, value could shift from retail investors to insiders, though the article notes insider selling is not confirmed.
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- SpaceX Is Set to Make Dubious History Yet Again, With Retail Investors Paying the Price
SpaceX (SPCX) went public on June 12 at a $1.77 trillion valuation, and today, Oct. 22, insiders become eligible to sell roughly 911.5 million shares, which could bring up to $133 billion in selling pressure. Instead of the usual 180-day lockup, SpaceX set a staggered, accelerated unlock schedule tied to earnings reports and calendar days, while Elon Musk cannot sell for 366 days. The IPO sold only about 555.6 million shares, under 5% of outstanding shares, so the float is rising quickly with each unlock, and another 319 million shares become eligible on Monday, Oct. 26. The article argues this amounts to a major wealth transfer from retail investors to insiders that could weigh on the stock.
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