SpaceX crashed too hard for insiders’ bonus unlock
Although mainstream media covered insiders’ massive unlock of 911.5 million SpaceX shares worth $101 billion on August 6, very few people realize that an additional unlock on that date failed because SpaceX’s stock price had crashed so badly.
That second, bonus tranche of 455.8 million shares required SpaceX to close at or above $175.50 per share, i.e. 30% above the formal $135 IPO price, for at least five of 10 trading days leading into its August 4 earnings report.
SpaceX held nowhere close to that threshold in Nasdaq trading. The condition failed.
The market capitalization of SpaceX was only able to reach its momentary, $3 trillion peak because Elon Musk floated only a tiny quantity of shares in the IPO.
Artificially limiting supply far below demand for his popular company created a three-day surge from $150 to $225.64 per share.
That was the peak. A swift retracement followed once investors started to prepare for insiders to unlock and sell their allocations.
SpaceX insiders fail to unlock 455.8 million shares
By the first unlock on August 6, SpaceX had declined 38% from its peak.
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