SpaceX faces fresh selling pressure as early investors look to cash out

While the initial August 6 expiration released 900 million shares into the market without triggering a crash, the stability was likely bolstered by short sellers covering their positions. SpaceX shares, which debuted on the Nasdaq in June at $135, currently hover around $141.29 after a period of significant volatility that saw them trade as high as $225.64.

The next hurdle arrives August 20, when an additional 320 million shares become eligible for trading. Elson notes that while eligibility does not mandate a sale, the temptation for early investors to secure profits from private funding rounds remains a persistent threat to the share price. Should demand fail to absorb these successive tranches of stock, the company could see further downward pressure as the market reconciles its record-breaking $85.7 billion IPO valuation with the reality of investor exit strategies.