SPCX Stock Price Falls 5% as $200B in SpaceX Shares Unlock for Trading

SpaceX (SPCX) stock fell more than 5% on Thursday as approximately $200 billion in restricted shares became eligible for trading. The release follows the company’s record third-quarter earnings, which showed revenue growing 161% from a year ago.

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SpaceX Unlocks 1.3 Billion Shares Following Q3 Earnings

SpaceX’s Thursday lock-up expiration allows eligible employees and early investors to sell up to 1.3 billion previously restricted shares. The release is about 28% of the main restricted-share pool set aside during the company’s June offering to the public.

The shares became eligible for trading two business days after SpaceX reported its third-quarter results on October 20. But don’t expect all the shares to be sold with the unlock.

An additional 328 million shares are expected to be released on October 26, which could further expand the stock’s available supply. Elon Musk’s shares, meanwhile, are still subject to other restrictions that last through June 2027.

The new release comes on the heels of worries over SPCX stock performance ahead of earnings, when shares tumbled in the broader technology sector.

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SpaceX Reports 161% Revenue Growth as AI Business Expands

According to SpaceX’s SEC-filed earnings report, third-quarter revenue reached $14.58 billion, compared with $5.58 billion a year ago. Net income grew to $4.4 billion from a loss of $1.1 billion in the same quarter a year ago.

The company’s Super Intelligence business was responsible for $7.56 billion in revenue, surpassing the Connectivity business with $5.25 billion. AI infrastructure agreements and the acquisition of Cursor helped drive growth as well as increasing software operations.

However, capital expenditures reached $19.59 billion, with approximately $16.44 billion allocated to the Super Intelligence division. The spending comes as a result of ongoing investment in computing hardware even as earnings have improved.

This comes after a resurgence of speculation over a potential merger between Tesla and SpaceX. However, Elon Musk said both firms had formed independent committees, but no deal has been struck yet.

SPCX Stock Falls 5% Despite Bullish Wall Street Forecasts

SPCX stock declined approximately 5.37% to $150.76 during Thursday’s trading session, reversing part of Wednesday’s earnings-driven gains. However, several Wall Street firms raised their price targets following SpaceX’s stronger quarterly results.

JPMorgan analyst Doug Anmuth raised his SpaceX price target to $500 from $240 while maintaining an Overweight rating. The revision followed the company’s third-quarter earnings report and updated growth expectations.

Meanwhile, UBS increased its target from $210 to $230 while retaining a Buy rating. The firm cited expanding AI computing agreements, progress on Starship development, and improvements in Grok as factors supporting its outlook.

In addition, TD Cowen has also raised its SPCX price target to $224 from $200, also maintaining a Buy rating. The firm increased its longer-term revenue and earnings estimates as SpaceX expands its artificial intelligence operations.