SpaceX stock slipped and fell back to its IPO price as another share unlock hit the public float.
Around 319 million shares held by early employees and investors become eligible to trade on Thursday, the Day 70 tranche in a staggered lockup that will release about 88% of SpaceX’s 13 billion shares through 2027.
SpaceX shares fell nearly 5% in early trade, dropping below its $135 IPO price.
The stock withstood a big unlock earlier this month. On Aug. 6, up to 911.5 million shares became tradable. The stock absorbed it and rose 6%, a massively bullish move.
The larger supply tests are still coming, with a 1.3 billion-share tranche set to unlock around SpaceX’s third quarter earnings in early November, followed by the 180-day expiry in December. CEO Elon Musk’s 6.42 billion shares stay locked until June 2027.
In other SpaceX news, reports suggest the company was in talks to acquire Cognition, an AI company that features a coding agent called Devin.
However, both Cognition and CEO Elon Musk denied the report.
“What Scott says is accurate,” Musk posted about Scott Wu, Cognition’s CEO who denied the report. “We haven’t talked with Cognition about anything except making sure Grok works well for their needs.”
The report comes after SpaceX just closed its $60 billion purchase of Cursor, another AI coding company.
Wall Street analysts, including Deutsche Bank’s Edison Yu, are bullish on the Cursor deal.
“We see three key benefits [to the Cursor buy]: 1) instance presence across many blue-chip enterprises who are already using Cursor at large scale; 2) access to a proprietary data flywheel derived from >1m real-world users generating coding interactions which in turn represent high-quality reinforcement-learning data for models; and 3) vertically integrating the application/harness layer (Cursor) with a frontier model (Grok) and large amount of compute (>2 GW exiting this year),” he wrote.
While Yu didn’t upgrade the stock or his $235 price target, he upped the team’s full-year EPS estimate by 11%, and its overall revenue projection by 1%.
Pras Subramanian is Lead Transportation Reporter for Yahoo Finance. You can follow him on X and on Instagram.
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