SpaceX Shares Slide 11% as Lockup Expiry Triggers Selling Pressure and Investment Concerns

The company did not sell any bitcoin during the second quarter, but its shares declined ahead of Wednesday’s market open as investors shifted their attention toward rising capital expenditures, potential free cash flow constraints, and an upcoming insider lockup expiration.

SpaceX shares dropped 11% in premarket trading Wednesday as investors overlooked the company’s better-than-expected first earnings report and instead focused on its aggressive spending plans and a significant insider share unlock scheduled for Thursday.

Revenue jumped 92% year over year to $7.8 billion, surpassing Wall Street forecasts, while adjusted EBITDA nearly tripled to $3.5 billion. Although SpaceX reduced its net loss to $541 million, the company spent $18.4 billion during the quarter as it accelerated investments in Starlink, Starship, and artificial intelligence infrastructure.

SpaceX kept its entire bitcoin holding of 18,712 BTC on its balance sheet throughout the quarter. The position was valued at approximately $1.1 billion at the end of June, highlighting the accounting concerns raised ahead of the company’s IPO — that bitcoin price fluctuations would directly impact quarterly financial results under fair-value accounting rules.

The value of SpaceX’s bitcoin holdings declined by about $195 million during the quarter, introducing additional volatility into the company’s earnings.

JPMorgan, which increased its price target for SpaceX to $240 from $225, said it expects the company’s capital spending to approach $200 billion annually in both 2027 and 2028. The bank warned that such elevated investment levels could place further pressure on free cash flow.

“We now forecast capex of nearly $200 billion in both 2027 and 2028, which further weighs on free cash flow in 2027, a trend we are seeing across major technology infrastructure companies,” JPMorgan analysts said.

The bank also highlighted Thursday’s insider lockup expiration, which could allow 911.5 million shares to become available for sale. The move could increase SpaceX’s public float by 143%, although JPMorgan noted that much of the impact may already be reflected in the stock price after investors had several months to anticipate the event.

Raymond James maintained its industry-leading $800 price target, pointing to SpaceX’s strong operational performance and long-term growth potential.

SpaceX shares were trading at $111.80.