by Coinstrooper Crypto Articles
Quick Take
  • SpaceX stock (SPCX) is now worth less than it was on day one.
  • That is about 15% below the $135 price the company set for its June 12 debut.
  • The obvious question is whether it comes back, and there is one good place to look for the answer.
  • That raised almost $75 billion and valued the company near $1.77 trillion, according to its prospectus.

What Happened

Peter Schiff called the drop a broader market crash warning. Now, IPO investors are sitting on nearly 20% loss.

Market Context

SpaceX stock (SPCX) is now worth less than it was on day one. Shares closed near $115 last week. That is about 15% below the $135 price the company set for its June 12 debut.

SpaceX reports earnings for the first time on August 4. Two trading days later, on August 6, a lot of shares become sellable.

Those shares only unlock if the stock trades 30% above the IPO price. In cash terms, that means $175.50.

The fall has therefore cut the amount of stock hitting the market. Roughly half the expected August supply is already gone.

Why It Matters

Anyone buying at the listing is underwater. The obvious question is whether it comes back, and there is one good place to look for the answer.

What Just Happened to SpaceX Stock

Details

SpaceX sold 555.6 million shares at $135 each. That raised almost $75 billion and valued the company near $1.77 trillion, according to its prospectus.

The start was strong. Shares opened at $150 and closed the first day around $161. By June 16 they hit $225.64.

Then the mood turned. The stock fell 6.7% on July 22 to $115.26. That is roughly 49% below the June high.

The company is now worth about $1.52 trillion. An earlier part of the slide had already wiped $500 billion from Musk’s fortune.

Three things went wrong at once:

Starship slipped

Rival Blue Origin raised new money, and

China caught a rocket booster.

That last one stung. On July 10, China landed a Long March 10B booster in a net on a sea platform. It became only the second country to bring an orbital booster home. SpaceX did it first in December 2015, so China is about a decade behind.

Why Two Dates in August Matter So Much

Here is why that matters. When a company lists, insiders sign a lock-up. It stops them selling for a set period.

SpaceX built its lock-up around earnings instead of the calendar. Once results are out, up to 911.5 million shares are free to trade.

Elon Musk is not one of the sellers. His shares are locked for 366 days, with no early exit, so he cannot sell until June 2027.

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The Huge Batch of Shares That Will Not Be Sold

A second batch of 455.8 million shares was also lined up for August. Almost nobody has noticed that it will not arrive.

It has to close there on five of the 10 days ending on the earnings date. The stock is near $115, so it cannot happen.