Key Highlights

  • SpaceX (NASDAQ: SPCX) fell 3.21% premarket after rising 7.79% on Wednesday to $159.31.
  • Up to 1.3 billion shares became eligible for sale on Thursday, the largest unlock since the IPO.
  • Third-quarter Revenue was $14.6 billion, up 161%, with Net Income of $4.4 billion.
  • Another 328.4 million shares unlock on Oct. 26.

SpaceX (NASDAQ: SPCX) fell 3.21% in premarket trading on Thursday, to about $154, after jumping 7.79% on Wednesday to $159.31, as its largest lock-up release since the IPO took effect and technology stocks sold off.

The Unlock

Up to 1.3 billion shares held by employees and early investors became eligible for sale on Thursday, the second full trading day after the Oct. 20 Earnings report. That is 28% of the shares subject to the 180-day lock-up and about 9.7% of shares outstanding, and it exceeds the previous largest release of up to 911.5 million shares in August. Another 328.4 million shares unlock on Oct. 26 and about 798 million on Dec. 8, while Elon Musk’s shares stay locked until June 12, 2027. Eligibility does not mean every share will be sold, and Index Funds are seen as natural buyers after the stock’s Nasdaq-100 inclusion.

A Strong Report and a Merger Headline

SpaceX posted third-quarter revenue of $14.6 billion, up 161% and above the $12.87 billion consensus, and net income of $4.4 billion. On the call, Musk said SpaceX and Tesla have formed special committees of independent directors to discuss a merger, which would need 50% of all Tesla shares. The shares rose after hours and again on Wednesday before the new pullback.

Why the Pullback

Profit-taking after an 8% gain and the Supply from the unlock explain the dip. The stock has been volatile since its IPO at $135 in June: it rose above $225, fell to about $105 and recovered to the mid-$140s before this week’s earnings. S&P 500 futures were down 0.9% and Nasdaq 100 futures 1.6% on Thursday as the AI-spending selloff resumed and Brent Crude climbed toward $112 a barrel on Middle East tensions.

What to Watch

Investors will watch trading Volume as the new shares become available, any insider selling disclosed in filings, and the Oct. 26 tranche. News from the Tesla-SpaceX special committees and the company’s reported $40 billion financing for AI chips could also move the stock.

Disclaimer: This content is for informational purposes only and does not constitute financial advice or a recommendation to buy, sell, or hold any security. Premarket prices are thinly traded, change quickly and may differ by provider. Investors should conduct their own research and consult a licensed financial adviser before making Investment decisions.