Investors were not impressed by SpaceX’s first-ever earnings report earlier this week. Shares dropped by more than ten percent, even after the company reported higher than expected revenue — comforting financial news which, unfortunately for CEO Elon Musk, was overshadowed by the venture’s massive AI spending.
The same day, SpaceX insiders, including employees and executives, got their first real opportunity to turn their holdings into cash after the total shares available for trading grew from around 639 million to 1.55 billion, a chunk of the stock valued at just over $100 billion being unlocked.
As Reuters put it, investors now faces an “irresistible opportunity to cash out.”
“This has to be the most talked-about lockup in the history of IPO lockups,” institutional brokerage firm R.F. Lafferty & Co CEO Robert Hackel told the agency. “You are going to see a lot of exits.”
