Retail Investors Sell SpaceX Shares After Lockup Expiration

Retail investors turned into net sellers of Space Exploration Technologies Corp. shares on August 7, marking the first such shift since the company's public debut on June 12. Data from Vanda Research shows retail investors sold a net US$4.5 million, pivoting from a period of persistent buying to cut losses as the stock remained volatile.

The shift follows the August 6 expiration of the first insider lockup, which released 911.5 million shares held by staff and early investors for public trading. While trading volume on August 6 exceeded 255 million shares—the highest since the IPO—the stock did not crash. Analysts suggest insiders held shares for better pricing following a recent decline, while some buyers entered the market expecting the lockup to mark a price bottom.

Despite revenue exceeding analyst expectations in its first public quarterly earnings report, the stock has struggled. Shares peaked at 67% above the US$135 IPO price in June but fell more than 22% below that price in August, hitting a low of US$104.83. Investors expressed concern over the sustainability of using profitable Starlink revenue to fund costly AI investments. The volatility has left several investors, including Australian billionaire Gina Rinehart, with stagnant or negative returns.