SpaceX (SPCX) Stock Price Faces Downside Risks Amid Insider Selling Speculations

The SpaceX (SPCX) stock price has regained momentum, as market focus shifts into the upcoming earnings release by Elon Musk’s space technology firm. The report will mark the firm’s first earnings announcement since its public debut and could shape the next phase of price action.

However, despite the optimism, some market watchers warn of a potential short-term pullback in the SPCX stock price ahead. The warning comes as insider lock-up expirations begin this week, potentially increasing the supply of tradable shares and creating downside pressure for the stock.

SpaceX Stock Price Faces Pressure Amid Insider Lock-Up Expirations

The SpaceX stock price was up nearly 3% after opening on Wall Street bell today, and surged past the $111 mark. This suggests that investors are regaining their confidence in the SPCX stock price, which might have helped gains in the share price today.

However, it appears that market attention has turned to the scheduled insider lock-up expirations, which many believe could weigh on SpaceX stock price in the coming months. According to market commentator Walter Bloomberg, the first phase of the lock-up expiry begins on August 6, allowing roughly 20% to 30% of previously restricted insider shares to become eligible for sale.

He also noted that the share unlocks will happen in stages. By December 2026, nearly 40% of the locked shares could enter the public market. A larger tradable float often raises concerns about increased selling pressure, especially when early investors and insiders decide to book profits.

Meanwhile, the commentary comes as SpaceX stock trades below its reported IPO price. Investors are also preparing for the company’s first earnings report, which is expected after Tuesday’s market close.

The financial results could influence market sentiment and determine whether buyers regain control or sellers extend the current weakness. In addition, a market expert has also fueled concerns, saying that the SPCX stock price may face further downside momentum in the near future.

Analyst Warns a Correction in SPCX Stock

Despite the rebound in SpaceX stock price today, some market experts believe that the asset may once again slip into negative territory. For context, analyst Crypto Patel recently pointed out that he had earlier projected a significant post-IPO correction for SPCX stock price.

He highlighted that the stock debuted around $135, climbed to an all-time high of approximately $225.60, and has since fallen to nearly $110. That represents a decline of more than 50% from its peak.

Meanwhile, Patel added that he continues to monitor the $50 to $70 price range as a possible long-term support zone. He argued that many of the world’s largest tech companies, including Nvidia, Amazon, and others, experienced deep corrections during their early public market years before delivering substantial long-term gains.

This suggests that the expert is bullish on the long-term trajectory of the asset, despite the short-term woes. In addition, it also comes in tandem with the latest bullish forecast from Bernstein, which has covered the SpaceX stock with an “outperform” rating and provided a price target of $239.

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