SpaceX Faces Liquidity Crunch as Massive Share Lockup Expires

The upcoming expiration allows employees and early investors to finally liquidate their holdings, creating a potential flood of insider selling. Historical precedents suggest that such events often trigger price volatility as supply suddenly overwhelms existing demand. SpaceX has struggled with waning investor sentiment since its historic June public offering, which briefly pushed the company to a $2 trillion valuation.

Market skepticism remains high, evidenced by short sellers who currently hold nearly $25 billion worth of the company’s stock. With the share price already retreating significantly from its peak—a decline that recently stripped Elon Musk of his trillionaire status—analysts are bracing for further turbulence. Morgan Stanley has cautioned that the stock could realistically test the $100 mark in the near term, marking a volatile reality check for a company that raised $85.7 billion just months ago.