$101 Billion Unlocked: SpaceX Insiders Get First Chance to Cash Out
SpaceX employees and early investors are getting their first opportunity to publicly sell company stock after a lockup agreement expired Thursday, releasing up to 911.5 million shares worth an estimated $101 billion. The move is expected to increase selling pressure on Elon Musk’s aerospace company as insiders begin converting stock holdings into cash.
According to Quartz, the expiration raises the number of shares available for trading to as many as 1.55 billion, up from roughly 639 million at the time of the company’s initial public offering. However, another block of as many as 455.8 million shares remains subject to lockup restrictions because SpaceX shares are trading below their $135 IPO price, MarketWatch reported. The stock finished Wednesday’s session at $108.27.
The end of the lockup marks the first meaningful opportunity since December 2025 for current and former employees, as well as early investors, to sell their shares. “This is the first real opportunity to turn paper wealth into real, hard cash that they can actually spend,” said financial advisor Evan Mills, who works with current and former SpaceX employees.
Breitbart News previously reported that roughly 4,000 current and former SpaceX employees became millionaires through their stock holdings, which are now eligible to be sold as the restrictions are lifted.
The anticipated windfall is already being felt in California’s luxury housing market. Gerard Bisignano, a partner at Vista Sotheby’s, said he has recently been contacted by several longtime SpaceX employees—mostly in their mid-30s and early 40s—who are searching for upscale homes in Southern California’s South Bay communities. Those neighborhoods include Manhattan Beach, Redondo Beach, Hermosa Beach, and Palos Verdes Estates, all located near SpaceX’s California headquarters.
“They seem to be in a state of disbelief themselves that they’re suddenly going to be able to, in some examples, buy a home for their parents. They’re going to have all this discretionary income that they can really do what they want,” Bisignano said.
Bisignano believes the local housing market could experience a surge similar to the one that followed Facebook’s 2012 IPO, when home prices near the company’s headquarters climbed 21 percent. He also expects increased demand for vacation properties in destinations such as Mammoth Lakes, Palm Springs, and Lake Tahoe.
The share release comes during a difficult stretch for SpaceX stock. Shares fell more than 10 percent Wednesday after the company’s first public earnings call failed to impress investors despite reporting quarterly revenue of $7.8 billion. Since reaching a high of $225.64 on June 16, the stock has lost more than half its value. According to Bloomberg, citing S3 Partners, short sellers have aggressively targeted the company, with about 35 percent of the available public float currently sold short.
“We’ve never seen anything like it, we’ve never seen anything of this scale, we’ve never seen a lock-up being phased in this way,” said Peter Singlehurst, head of the private companies team at Baillie Gifford. “We’re in uncharted waters.”
Rather than using the traditional single 180-day lockup period, SpaceX adopted a staggered release schedule consisting of nine separate stages, an approach intended to prevent a sudden flood of shares from hitting the market all at once. Barron’s reported that another 319 million shares are scheduled to become eligible for sale on August 12, with additional releases continuing through the end of the year. Bloomberg reported that by early December, when the full 180-day lockup expires, as many as 5.33 billion shares could be available for trading. A separate lockup covering CEO Elon Musk and certain other major shareholders remains in effect until June 2027.
The phased release schedule was triggered by SpaceX’s first earnings report, which was released after the market closed on August 4. Under the plan, the initial tranche—representing up to 20 percent of eligible insider shares—became available for sale on Thursday, the second full trading day after the earnings announcement.
How many insiders ultimately decide to sell remains uncertain. J.P. Morgan analyst Doug Anmuth wrote in a research note that investors had already been repositioning their portfolios ahead of Thursday’s expiration, a trend that could ease selling pressure now that the shares are freely tradable. Despite expectations of increased selling, SpaceX stock opened Thursday modestly higher at approximately $111 per share.
{Matzav.com}