SPCX falls 5% as $200B in SpaceX shares unlock—now that’s one heavyweight air drop 🚀

SpaceX (SPCX) stock fell more than 5% on Thursday as approximately $200 billion in restricted shares became eligible for trading, expanding the pool of stock available for sale following the company’s record third-quarter earnings.

The lock-up expiration permits eligible employees and early investors to sell up to 1.3 billion previously restricted shares. It covers about 28% of the main restricted-share pool set aside during SpaceX’s June offering to the public and took place two business days after the company reported third-quarter results on October 20. Another 328 million shares are expected to be released on October 26, potentially expanding available supply further, though not all unlocked shares are expected to be sold.

SpaceX’s SEC-filed earnings report showed third-quarter revenue of $14.58 billion, up 161% from $5.58 billion a year earlier. Net income rose to $4.4 billion from a $1.1 billion loss in the same quarter a year earlier, while the company’s Super Intelligence business generated $7.56 billion in revenue, surpassing Connectivity.

Elon Musk’s shares remain subject to separate restrictions through June 2027. JPMorgan raised its SPCX price target to $500, while UBS and TD Cowen lifted their forecasts as SpaceX reported strong revenue growth driven by expanding AI operations.