SpaceX’s IPO (Initial Public Offering) has set a new standard for companies going public. The IPO was the largest ever recorded and led to SpaceX founder Elon Musk becoming the world’s first trillionaire. While many are lining up to buy SpaceX (SPCX) stocks, there are some risks you should be aware of. Let’s discuss.
3 Major Risks To SpaceX Stocks
The first risk you should know about is additional stocks being issued. SpaceX (SPCX) made its debut with just 5% of its total shares. This creates scarcity and helps prop up the asset’s price. Once insiders receive their shares and more stocks are unlocked, it could lead to more selling pressure. Insiders will be able to sell 20% of their stocks after SpaceX releases its Q2 earnings results, which could happen in late July or early August 2026. The total lock up period for insiders is 180 days. All insider stocks can move to the market on December 9, 2026. Waiting until December 9 to make a decision on a SpaceX (SPCX) stock position could prove beneficial for retail players.
The second risk to the SpaceX (SPCX) stock is the potential AI hype fizzing out. While SpaceX is a space venturing rocket manufacturer, the company also has its fingers in the AI pie after the acquisition of xAI earlier this year. The US stock market has been riding the AI wave and the hype could die down over time. Such a development could lead to a price dip for SpaceX (SPCX).
Also Read: Should I Buy SpaceX Stock? Wall Street Warns of a Post-IPO Drop
The third risk to SpaceX’s (SPCX) stock price is its earnings falling short. According to Freedom Capital Markets’ Paul Meeks, investors will have to pay attention to how the company’s valuation is or is not squaring with fundamentals. Moreover, Michael Burry also noted that SpaceX (SPCX) is rallying on hype and that the company is not worth more than $1 trillion.