Investor Gary Black of The Future Fund LLC said on Monday that Elon Musk-led Space Exploration Technologies Corp.
(NASDAQ:SPCX) shares could drop below the IPO price of $135/share in the coming days.
SPCX's Share Lock-Up In a post on X, the investor said that the company's shares will likely fall below "its $135 IPO price as 20% of locked shares become free in early-August." Read Also: Elon Musk Says SpaceX Will Fly Orbital Data Centers Next Year—Jim Chanos Isn't Buying It The investor is pointing to the IPO's structure that will allow insiders, excluding Musk and other majority shareholders, to sell up to 20% of the shares owned by them following SpaceX's second-quarter earnings call, according to a report by The Motley Fool.
The report said insiders can also sell up to 7% of their shares on the 70th, 90th, 105th, 120th and 135th days after the company's public debut.
Another 28% of shares can be sold following SpaceX's third-quarter earnings call.
