Elon Musk Can't Sell SpaceX Stock Until June 2027 -- But 6 Billion More Shares Could Flood the Market Before Then
SpaceX went public with an unusually tiny float available for trading. That's about to change in a big way.
Overview
Space Exploration Technologies Corp. (NASDAQ: SPCX) went public on June 12, ultimately selling 638.9 million shares at $135 through its initial public offering (IPO), raising a record-setting $85.7 billion in the process.
Chief Executive Officer Elon Musk, who owns more than 6 billion in combined Class A and Class B shares -- about 42% of the company by value -- agreed to a 366-day lock-up of his stake. That means he can't sell any shares until June 12, 2027.
Details
He's not the only one, however. Early investors and SpaceX employees are also temporarily barred from selling their shares. But they don't have to wait a year to do so. During the next year, nearly 6 billion additional shares will become available for sale through staggered lock-up releases before Musk gets his chance to sell.
Source
Originally published at www.fool.com.