SpaceX shares dipped 0.93% to $147.29 on Monday despite the company successfully completing the first orbital flight and Pacific Ocean splashdown of its Starship vehicle. The drop followed a surge in tradable share supply following the expiration of a post-IPO lockup and executive stock sales.
Post-Lockup Supply Pressures SpaceX Shares
During Monday's test, Starship reached approximately 170 miles above Earth, successfully deployed 26 Starlink V3 satellites, survived atmospheric reentry, flipped upright, and landed intact in the Pacific Ocean. Chief Executive Officer Elon Musk confirmed the successful mission, which Cathie Wood previously argued could support valuations reaching $1.75 trillion if scaled.
However, technical achievements were counterbalanced by market mechanics. On Sept. 24, approximately 328 million shares became eligible for trading as SpaceX's post-IPO lockup period expired. Adding to market supply, SpaceX President Gwynne Shotwell recently sold $52.5 million in shares under a pre-arranged trading plan.
Key Takeaways
- Starship Mission: Reached 170 miles in altitude, deployed 26 Starlink V3 satellites, and completed a soft ocean splashdown.
- Stock Movement: SpaceX shares fell 0.93% to $147.29 around noon ET on Monday, Sept. 28.
- Lockup Expiry: 328 million shares became tradable after the Sept. 24 lockup period ended.
- Executive Sale: SpaceX President Gwynne Shotwell sold $52.5 million in stock under a pre-arranged plan.
- Options and Targets: Open interest features 22,700 call contracts at the $150 strike, with Wall Street price targets spanning $142 to $222.42.
Options Positioning and Wall Street Targets
Traders are now focusing on key price levels ahead of Friday's options expiry. Data shows open interest heavily weighted at the $150 call strike with 22,700 contracts, while put concentration centers around $140.
Wall Street equity analysts remain split on the company's valuation. MoffettNathanson maintains a Neutral rating with a $142 target price, whereas the average analyst price target stands at $222.42.
Why It Matters
The divergent stock reaction highlights the tension between operational milestones and equity market liquidity. Proving Starship's orbital capability clears a vital hurdle toward reducing payload launch costs, but short-term pricing is constrained by 328 million newly unlocked shares and executive sales. Investors will watch whether call open interest around $150 can provide a foundation as secondary market supply is absorbed.
