Sept. 9 Marks a Pivotal Moment for SpaceX and Its Investors

Key Points

• SpaceX made history on June 12 by raising $85.7 billion in its initial public offering.

• Up to 319 million early-release insider shares will become eligible for sale in just over one week.

• The company’s staggered share-unlock schedule could weigh heavily on retail investors.

Less than three months ago, on June 12, Elon Musk’s Space Exploration Technologies (SpaceX) (NASDAQ: SPCX) shattered Wall Street records. The company executed the largest initial public offering (IPO) ever, raising $85.7 billion, including the underwriters’ overallotment—nearly tripling the previous record held by Saudi Aramco ($29.4 billion).

However, SpaceX’s milestone-making isn’t finished. Due to its unique share unlock structure, Sept. 9 represents the next critical date for both the company and its shareholders.

Image source: Getty Images.

Insiders can cash out (again!) in a little over one week

When private companies go public, they typically prevent insiders—including executives, board members, and beneficial owners of at least 10% of outstanding shares—from selling their holdings until 180 calendar days after the IPO. This lockup period exists to prevent insiders from capitalizing on early retail investor enthusiasm.

SpaceX, however, has broken with convention. The company’s extensive S-1 registration statement described an accelerated and staggered share-unlock schedule that permits certain insiders (excluding Musk) to liquidate shares well before the traditional 180-day mark.

Great look at the SpaceX shares unlock schedule as well as the potential passive buying schedule from @JSeyff @FrancisSharoon Depending on the early post-IPO returns, this could really play with and disperse the returns of “passive” funds (which is why there’s arguably no such… pic.twitter.com/KOuEkJlngF

— Eric Balchunas (@EricBalchunas) May 28, 2026

Two trading days after SpaceX reported its second-quarter operating results on Aug. 4, approximately 911.5 million early-release insider shares became eligible for sale. On the 70th calendar day following the IPO (Aug. 20), another 319 million shares were added to the available pool.

The next major unlock milestone falls on the 90th trading day post-IPO, which is Sept. 9. Once again, 319 million additional shares will become eligible for sale by select insiders. Subsequent time-based milestones are scheduled for Sept. 24, Oct. 9, and Oct. 26.

Image source: Getty Images.

Space Exploration Technologies’ insider sales may swamp retail investors

Beyond the sheer volume of early-release insider shares potentially flooding the market, another concern is that SpaceX’s public float was artificially low from the outset.

Typically, private companies sell between 10% and 25% of their outstanding shares during their public debut. Musk’s company announced the sale of 555.6 million shares at $135 each just days before its June 12 IPO. While this figure appears substantial, it represented less than 5% of the company’s total outstanding shares.

This artificially low float benefited shareholders in the weeks following the IPO. Several major indexes modified their entry criteria to facilitate SpaceX’s quick inclusion, meaning passive funds absorbed much of the limited float and artificially drove up the share price.

To be clear, this means only the S&P 500 will exclude SpaceX shortly after its IPO.

FTSE Russell adds eligible megacap IPOs after the close of the 5th trading day.

Nasdaq adds them about 15 trading days after listing.

The S&P 500 kept its rules, so SpaceX waits the full…

— Hedgeye (@Hedgeye) June 4, 2026

However, each subsequent share-unlock milestone gives early-release insiders the opportunity to flood the market with tradable shares, potentially overwhelming retail investors. This is why the Space Exploration Technologies IPO has been characterized as one of the most significant disadvantageous events for retail investors in Wall Street history.

Even if ongoing insider sales don’t entirely overwhelm retail investors, SpaceX’s operating fundamentals likely will. It remains far from consistent profitability and trades at a price-to-sales ratio that historically signals excessive valuation. Moreover, high-profile tech IPOs have not historically delivered strong long-term returns on Wall Street.

Sean Williams has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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