SpaceX stock fell 2.6% today, here’s why
On Wednesday, SpaceX's shares experienced a 2.6% decline, trading at $139.65, according to investing.com. The stock's drop was attributed to the upcoming stock lock-up expiration on August 20, which is set to release 319 million shares held by SpaceX employees and early investors. This is the second tranche of the post-IPO lockup expiry schedule; the first tranche occurred on August 6 and led to the stock reaching a new post-IPO low.
Despite subsequent recovery, the looming lockup expiries continued to exert downward pressure on the stock price. Lockup expiries introduce large quantities of shares into the market, thereby increasing supply and suppressing prices. The initial unlock on August 6 effectively doubled SpaceX’s public float. Additionally, AI coding startup Cognition AI clarified that it was not in discussions with SpaceX regarding a potential acquisition.
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