SpaceX (SPCX) faces its first lockup expiry on August 6, allowing early institutional investors to sell shares they bought at prices as low as $4. The stock, which IPO'd at $135 in June and peaked at $226, now trades around $108, down roughly 52% from its high.
The lockup lifts two trading days after SpaceX's first earnings report as a public company, due August 4. Early backers, including Google and Fidelity, bought private shares years ago at deeply discounted prices, and the lockup has prevented them from selling until now.
This is the first of several staged unlocks scheduled for later this year. A $10 million investment at $4 a share would be worth about $270 million at the current price, while the same investment at $6 would be worth roughly $180 million.
Google disclosed last week it holds $94.1 billion in SpaceX shares, about 6% of the company, stemming from a $1 billion investment in 2015. That position represents one of the largest paper gains on a single private investment for a public company.
The article notes that early investors may sell gradually to manage price impact, but the incentive to lock in gains is strong given their low cost basis. It advises investors to be aware of the supply overhang, though it stops short of predicting a sell-off.
Source: howestreet.com
