SpaceX stock price rose more than 3% on Tuesday, snapping a seven-session losing streak. Shares of the Elon Musk-led company ended 3.08% higher at $123.54 apiece, giving SpaceX a market capitalisation of $1.63 trillion.
The seven-session fall had wiped out $425 billion from the company’s market value, according to data compiled by Bloomberg. Despite Tuesday’s gains, the stock continues to trade below its initial public offering (IPO) price.
SpaceX shares have declined in 10 of the past 12 trading sessions amid a broader sell-off in artificial intelligence-related stocks and after the company aborted a launch of its Starship rocket due to an engine issue.
The rocket and AI company, formally known as Space Exploration Technologies Corp., listed on the US stock market on June 12 at $135 a share. The stock subsequently surged to a record high of $225.64, pushing SpaceX’s valuation above $2.6 trillion.
However, SpaceX stock price has since come under significant pressure, closing at $119.85 on Monday — more than 45% below its post-IPO peak.
SpaceX to report first quarterly earnings on August 4
SpaceX has announced that it will release its first quarterly earnings report as a publicly traded company on August 4.
The company, which trades under the ticker SPCX on the Nasdaq, is scheduled to report its results after the US market closes at 9:30 p.m. GMT. The results will cover the second quarter ended June 30.
SpaceX reported a loss of $4.3 billion last year in its IPO filings. The company has also set a long-term goal of developing data centres in space.
SpaceX faces major share unlock
SpaceX is set to witness one of the largest share unlocks in capital markets history, with as much as $116 billion worth of stock potentially becoming eligible for sale next month, Bloomberg reported.
Restrictions preventing certain insiders from selling as many as 911.5 million shares are scheduled to expire on August 6, just two days after the company reports its quarterly results. In addition, billions of shares are expected to become eligible for trading by the end of the year.
The share unlock could give early investors and private-market shareholders an opportunity to realise substantial gains.
By early December, the number of SpaceX shares available for public trading is expected to rise to 5.33 billion from around 639 million currently, according to the IPO prospectus.
Elon Musk owns an aggregate of 7.8 billion SpaceX shares, representing roughly 60% of the company’s outstanding stock. According to the prospectus, he has agreed not to sell his shares until slightly more than a year after the company’s June debut.
The structure outlined by SpaceX and its investment bankers is unusual compared with traditional post-IPO lock-up arrangements. Typically, company insiders are subject to a 180-day lock-up period before a potential wave of shares enters the market.
Given SpaceX’s enormous size, the company opted for a different structure after considering several alternatives to expand the pool of publicly tradable shares without creating a sharp imbalance between supply and demand.
(With inputs from Agencies)
