Elon Musk’s SpaceX shares remain frozen under a 366-day lockup agreement following the company’s record-breaking June 12 IPO, preventing the founder from selling any of his stake until June 2027. The extended restriction applies to Musk and certain significant investors, far exceeding the standard 180-day lockup period that typically governs insider share sales after initial public offerings.
SpaceX priced its IPO at $135 per share on June 11, 2026, raising over $75 billion in what became the largest IPO in history. Musk, who holds approximately 42 to 46 percent of SpaceX’s equity, agreed to the full 366-calendar-day restriction as part of the offering terms.
The 180-day lockup is the long-standing market standard for IPOs, designed to prevent insiders from flooding the market with shares immediately after a company goes public. Extending that period to 366 days signals confidence in SpaceX’s long-term prospects and protects the stock from sudden selling pressure during a critical early trading phase.
SpaceX departed from the typical lockup structure by implementing a tiered release schedule for other pre-IPO investors. According to the company’s IPO prospectus, those investors can sell up to 20 percent of their eligible shares starting the second full trading day after the company reports its second-quarter earnings. If the stock trades at least 30 percent above the IPO price at that point, they can sell an additional 10 percent. Musk remains locked up and cannot participate in any of these early-release provisions, the filing stated.
The phased approach for other investors includes a rolling schedule where an additional 7 percent unlocks after 70, 90, 105, 120, and 135 days following the public listing. When SpaceX reports third-quarter earnings, another 28 percent becomes available for sale. The remainder fully unlocks at the standard 180-day mark, which falls in December 2026.
The tiered structure aims to spread insider selling across months rather than creating a sudden wave of shares hitting the market at once. Analysts say this approach helps prevent the stock price volatility that often accompanies traditional lockup expirations. By metering the release of shares gradually, SpaceX hopes to maintain trading stability while allowing some early investors to take profits incrementally.
The lockup also affects SpaceX’s eligibility for the Nasdaq 100 index. The exchange’s new fast-entry rules allow companies with market capitalizations above the 40 largest members in the Nasdaq 100 to join the index within weeks of their IPO, provided they meet minimum free-float requirements. SpaceX’s phased unlock schedule accelerates the availability of tradeable shares, helping the company qualify for faster index inclusion and attracting passive index funds that must buy shares to match their benchmarks.
Sources
- Yahoo Finance — Confirmed Musk’s shares locked for 366 days after IPO, earliest sale date
- Morningstar — Detailed tiered lockup structure for SpaceX investors and Musk’s extended restriction
- CNBC — Explanation of SpaceX’s unique early-release provisions and comparison to standard 180-day lockups
- Investing.com — Lockup timeline and earnings-based release triggers
- Reuters — IPO pricing at $135 per share, $75 billion raised, phased releases before standard lockup
- Investor’s Business Daily — Musk’s 46% stake and ownership structure
