SpaceX stock ends seven-day slide before $116bn share unlock

SpaceX stock rose 3.08% to $123.54 on Tuesday, halting a seven-session losing streak that erased $425 billion in market capitalization. Despite the rebound, the rocket and artificial intelligence company remains below its $135 initial public offering price from June 12.

The recent volatility reflects a broader market repricing of AI-related equities, compounded by company-specific operational setbacks. SpaceX fell in 10 of the last 12 trading sessions, with selling pressure accelerating after the company aborted a Starship rocket launch due to an engine issue.

The stock's trajectory has been highly volatile since its market debut. Shares surged to a record high of $225.64 shortly after listing, briefly pushing the company's valuation above $2.6 trillion. However, the price collapsed to $119.85 by Monday, a drop of more than 45% from that peak.

Earnings and historic unlock

Attention will now shift to August 4, when SpaceX reports its first quarterly earnings as a publicly traded company. The results, covering the second quarter ended June 30, will provide the first public glimpse into its post-IPO financial trajectory. Investors are focused on the company's path to profitability after IPO filings revealed a $4.3 billion loss in the previous year.

The earnings release sets the stage for an unprecedented event in capital markets. Just two days later, on August 6, lock-up restrictions on 911.5 million shares are scheduled to expire. This could introduce as much as $116 billion worth of stock into the market, giving early investors and private-market shareholders their first chance to realize substantial gains.

Rather than a standard 180-day lock-up, SpaceX and its investment bankers engineered a staggered release to prevent a sudden supply and demand imbalance. By early December, the publicly tradable share count is set to balloon from roughly 639 million to 5.33