SpaceX stock is back in the $150 range after climbing above $200 and falling to $108. Motley Fool writer Reuben Gregg Brewer says insider lockups ending on dates through December 2026 could make more shares tradable and pressure the price.
Lockups do not increase the total number of shares, but they can make more shares available to trade, leaving the market to absorb additional supply. The article describes lockup periods as a common feature of IPOs.
Brewer says long-term investors who believe SpaceX is a leading space company probably should not sell, while short-term traders who bought into the IPO excitement might consider selling near $150. SpaceX priced its IPO at $135 and raised $75 billion; underwriters’ overallotment brought total proceeds above $85 billion.
