SpaceX Shares Fall as Lock-up Period Ends and Spending Soars

Shares of Space Exploration Technologies Corp. dropped to between $111 and $113 on August 5, 2026, following the company's first earnings report since its June IPO. While the company beat estimates with $7.8 billion in second-quarter revenue and $3.5 billion in EBITDA, investors reacted negatively to $18.4 billion in quarterly capital expenditures. This spending, primarily for AI infrastructure, may reach $65 billion for the full year, surpassing analyst projections of $50 billion.

Chief Executive Elon Musk responded to the volatility by accelerating the company's revenue target of $1 trillion, moving the goal from 2031 to 2030. Despite these projections, the stock remains volatile, trading well below its $135 IPO price and its peak of $225. Market pressure is further intensified by the August 6 expiration of a lock-up period, which makes up to 911.5 million shares held by employees and early investors eligible for sale. This event is expected to quadruple the available market supply.

These financial headwinds follow the largest public listing in U.S. history on June 12, which valued the company at $1.75 trillion. Operational milestones continue alongside the financial turbulence, including a July 24 test flight of the third-generation Super Heavy-Starship vehicle from Texas. While the Starship upper stage achieved a controlled splashdown in the Indian Ocean, the Super Heavy booster experienced engine restart failures during its descent into the Gulf of Mexico.