SpaceX shares fall on lockup expiry concerns

Typically, shareholders like executives and early investors are restricted from selling shares for up to 180 days after a company goes public. However, SpaceX had an unusual arrangement allowing up to 20% of its restricted shares to be sold starting Thursday, the second trading day after its second-quarter earnings release.

Analysts expressed concern that the increased supply of shares could add pressure to the stock. While a lock-up expiration does not require insiders to sell, such events are often viewed cautiously. "Employees and early investors might want to secure their profits or invest in other opportunities," said Carolane de Palmas, market analyst at ActivTrades. "Even without heavy selling, the increase in available shares is likely to keep volatility elevated."