SpaceX Shares Drop to Record Low Amid Lock-Up Concerns
On Monday, July 27, SpaceX shares fell to an all-time low of $108.66 before recovering slightly to trade around $111 by late morning. The decline was driven by investor concerns over the upcoming expiration of a share lock-up period on August 6 and questions about valuation and capital spending plans. The stock has lost nearly half its value since its post-IPO peak, despite recent progress in Starship rocket testing. Investors are also watching SpaceX's first quarterly earnings report due on August 4 for further clarity. The impending lock-up expiration could allow the sale of up to 911.5 million shares—about 20% of eligible locked stock—which has raised concerns about increased supply and downward pressure. The sell-off reflects skepticism over SpaceX’s $1.46 trillion market cap, which some investors find hard to justify given its reported revenue for 2025 is under $19 billion. The company's heavy capital spending on AI infrastructure and a planned $20 billion bond offering have also raised concerns about funding needs before achieving positive cash flow.
Tickers: $SPCX
Topics: bond offering capital spending lock-up expiration valuation concerns