Elon Musk Can't Sell SpaceX Shares Until 2027. Here's Who Can, and When.
Elon Musk currently controls 48.4% of SpaceX.
Overview
Research has consistently shown that IPO stocks have performed well on their first day of trading. From 1980 through 2024, roughly 9,000 companies went public via an initial public offering. The average first-day return was 18.9%.
Notably, however, the average three-year return for these IPO stocks totaled just 19.1%. The market's average three-year return over the same time period was closer to 40% . So while IPO stocks typically perform well at first, they often underperform in the years that follow. Perhaps Elon Musk will keep that data in mind as he becomes eligible to sell his massive stake in Space Exploration Technologies (NASDAQ: SPCX), which went public this summer.
Details
Musk is currently bound by a 366-day lockup period that prevents him from selling any of his SpaceX stock. Lockup periods are not required by law. They are typically designed by underwriters or the company itself to signal to future IPO investors that the existing investor base remains committed over the long term. If Musk and other key figures are unable to sell their shares for months or years after the IPO, prospective investors will likely be more willing to buy in.
Source
Originally published at www.fool.com.