SpaceX Stock Drops to IPO Price as Chinese Rival Lands Rocket Booster

What Happened This Week?

SpaceX had a rough week on the stock market. Think of it like a roller coaster that went down instead of up. Here’s the simple version:

• Stock price fell below its starting price of $135 (the IPO price)
• Down over 2% for the week even though it had a small bounce on Friday
• Big reason: Tons of shares became available to sell all at once

The "Lockup" Problem: Too Many Shares, Not Enough Buyers

Important Point: When a company goes public, early investors and employees can’t sell their shares right away. This is called a lockup period. When it ends, lots of shares hit the market at once.

This Week’s Unlock

• 319 million shares unlocked on Thursday
• These belonged to early employees and investors
• Part of a staggered release — 88% of all 13 billion shares will unlock by 2027

Previous Unlock (August 6)

• 911.5 million shares became tradable
• Surprisingly, the stock rose 6% — investors absorbed the supply well

Upcoming Unlocks to Watch

1. ~1.3 billion shares around Q3 earnings (early November)
2. 180-day lockup expiry in December
3. Elon Musk’s 6.42 billion shares stay locked until June 2027

Starship Update: Catching Rockets With "Chopsticks"

Elon Musk posted on X (formerly Twitter) with updates on Starship, SpaceX’s giant next-gen rocket:

Note: SpaceX originally hoped to attempt the tower catch in August, but that timeline has slipped.

What’s the "Tower Catch"?

Instead of landing on a drone ship at sea, the rocket booster flies back to the launch tower, where giant mechanical arms (nicknamed "Mechazilla" or "chopsticks") grab it out of the air. No one has ever done this before.

China Scores a Win: LandSpace Lands a Booster on Land

This week, Chinese startup LandSpace made history:

• First Chinese company to land an orbital-class rocket booster on land
• Rocket: Zhuque-3 (216 feet tall)
• Launch site: Dongfeng Commercial Space Innovation Pilot Zone (northwest China)
• Flight: Second ever — first flight (Dec 2025) reached orbit but lost the booster

How Does Zhuque-3 Compare to Falcon 9?

Key Takeaway: Reusable rockets are no longer just a SpaceX thing. But SpaceX has a massive experience lead.

Why This Matters for Investors

The Bull Case (Good News)

• SpaceX still dominates: 600+ successful booster landings
• Starlink revenue growing fast
• Starship progress continues (even if slower than hoped)

The Bear Case (Risks)

• Massive share unlocks through 2027 = potential selling pressure
• Real competition emerging (LandSpace, Rocket Lab, others)
• Starship delays could push back Mars/Starlink v2 plans

ELI5 Summary

Imagine SpaceX is a lemonade stand that went public.

• Early helpers (employees, investors) were told: "You can’t sell your cups yet."
• Now, the timer went off — they can sell.
• 319 million cups hit the market this week.
• Price dipped back to $135 (opening price).
• Meanwhile, a new lemonade stand in China just figured out how to reuse their cups (land rockets).
• SpaceX has done this 600+ times. China: once.
• But the fact that anyone else can do it? Big deal.

FAQ

1. What is a "lockup period"?

A lockup period is a waiting time (usually 90–180 days) after a company goes public where insiders can’t sell their shares. It prevents a flood of selling all at once.

2. Why did the stock drop if the last unlock caused a 6% rise?

Markets are moody. The August unlock was a "test" — investors passed. This time, maybe more sellers than buyers, or general market weakness. Also, the size of future unlocks (1.3B shares!) looms larger.

3. Is LandSpace a real threat to SpaceX?

Not yet. One landing ≠ 600. But it proves reusable tech is spreading. Long-term, more competition = lower prices, more innovation.

4. When will Elon Musk sell his shares?

Not until June 2027 at the earliest. His 6.42 billion shares are locked. That’s a lot of shares — but far away.

5. What’s the "tower catch" and why is it cool?

Most rockets land on a boat. SpaceX wants to catch the booster with robot arms on the launch tower. It’s faster, cheaper, and lets them refly the rocket sooner. Like catching a falling pencil with chopsticks — at 1,000 mph.

Final Summary

Bottom line: SpaceX is still the king of reuse, but the crown is getting company. And with billions of shares unlocking over the next few years, the stock ride might stay bumpy.