Important Information Regarding the Expiration of the SpaceX Stock Lock-up Period
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The initial expiration of the lock-up period did not immediately lead to a price decline. On August 6, the day approximately 911.5 million shares were released for trading, SPCX rose by 6.14% and closed at 114.92 US dollars. Previously, SpaceX shares had already significantly declined from their post-IPO daily high of 225.64 US dollars. While the expiration of a lock-up period means shares can be sold, it is not equivalent to actual sales. In the short term, the stock price ultimately depends on the ratio between actual selling volume and buying interest in the market. Data from S3 Partners showed that short interest in SpaceX accounted for approximately 34% of the free float at the end of July. Following the initial expiration of the lock-up period, this ratio decreased to around 11% by mid-August, as the free float expanded and short positions were adjusted. The behavior of retail investors also changed. Data from Vanda Research showed net sales by retail investors of approximately 4.5 million US dollars on August 7 – the first day of net sales by retail investors since SpaceX's IPO. Furthermore, SpaceX was included in the Nasdaq 100 Index on July 7 with an initial weighting of approximately 1.3%. JPMorgan estimated at the time that inclusion in the index could bring passive inflows of approximately 4.3 billion US dollars. While such index adjustments generate additional...
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