SpaceX shares fell about 5% on Thursday after an additional tranche of the company’s stock became available for trading following the expiry of a post-IPO lock-up period.
The newly released shares account for roughly 7% of SpaceX’s total outstanding stock, marking the second batch of shares to become eligible for trading since the company’s initial public offering.
The decline extended SpaceX’s losing streak to three consecutive sessions, adding pressure to a stock that has experienced significant volatility since its market debut.
SpaceX shares initially rallied strongly after the IPO, rising from an offering price of $135 to more than $225. However, the stock subsequently lost much of those gains, reaching an all-time low of $108.27 less than two months later.
The shares have since recovered and have recently traded in the $130 to $140 range.
The latest decline comes as the increased supply of tradable shares gives existing holders another opportunity to sell, potentially adding selling pressure to the stock.
Lock-up periods are commonly imposed following an IPO to prevent insiders and other early investors from selling large amounts of shares immediately after a company enters the public market.
With another 7% of SpaceX’s outstanding stock now eligible for trading, investors will be watching closely to see whether the additional supply leads to further volatility in the shares.
