Why This Could Be the Worst Time to Buy SpaceX Stock

SpaceX stock has dropped below its $150 IPO opening price despite the company raising a record $86.7 billion, according to The Motley Fool. The private space company now faces three bearish catalysts that could push shares even lower in the near term.

The most immediate threat comes from a lockup period expiration scheduled for early August. When the restriction lifts, 911.5 million shares—representing 6.8% of total outstanding shares—will become eligible for sale. This potential supply surge arrives as the broader tech sector weakens and early investors look to lock in profits.

The timing compounds existing pressure on SpaceX's valuation. After trading above its IPO price initially, the stock has now surrendered those gains even as the company achieved its largest capital raise to date. The combination of sector headwinds, profit-taking dynamics, and the looming share unlock creates a potentially volatile setup heading into August.

The $86.7 billion raise underscores strong institutional demand at higher prices, but the 911.5 million share unlock represents substantial overhead supply that could absorb buying interest and weigh on price discovery.