SpaceX IPO Ditches Lock-Up for Staged Share Resale System

SpaceX unveiled an unconventional initial public offering structure that replaces the standard 180-day lock-up period with a staged share resale system tied to company performance and quarterly earnings releases. The aerospace company is targeting a valuation of US$1.75 trillion.

Under the plan, up to 20% of restricted shares become eligible for resale after the second-quarter earnings release, with additional blocks unlocking based on stock-price triggers and subsequent earnings reports. The design aims to prevent a massive wave of shares from flooding the market at once, which typically pressures newly public stocks downward, though it may spread volatility across six months rather than containing it to a single event.

Elon Musk, who controls 85.1% of voting power, and other major investors agreed to a 366-day restriction on selling their shares — roughly double the conventional lock-up. That commitment signals confidence from insiders while insulating the early market from the heaviest selling pressure. The filing marks one of the most anticipated public debuts in recent years and introduces a resale mechanism that other companies may watch closely if it succeeds in smoothing post-IPO trading.