# SpaceX shares rally 6% instead of expected sell-off Expiration of employee lockup period didn't trigger panic selling as feared. - **Source:** [Fortune](https://fortune.com) - **Published:** 2026-08-07 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/6b9223a9-1a62-4831-8b87-b3242fe31a61 ## Expected selling wave didn't materialize With the expiration of SpaceX employee lockup, about $1 billion worth of shares were expected to hit the market. However, only 7 million shares traded on NASDAQ on Thursday. Shares changed hands at around $107, with total volume remaining at approximately $750 million. This was significantly lower than anticipated. ## Employees didn't rush to sell It emerged that SpaceX employees have been able to meet cash needs through regular company buybacks over the past decade. A former employee described each buyback period as a 'game theory' exercise about how much to sell. Since most employees had already benefited from previous opportunities, there was no major selling pressure. ## Investors positioned in advance Analysts noted that the stock's continuous decline over the past three weeks showed the market had priced in this event. Short-term investors and hedge funds had sold shares in anticipation of the selling wave. When the event occurred, they bought back to cover their positions. This dynamic helped stabilize prices. ## Viewed as a technical event Tigress Financial Partners CIO Ivan Feinseth characterized this as a healthy transition. He emphasized that the lockup expiration wasn't a signal of deteriorating fundamentals, but rather a technical event accelerating the shift of shares from insiders to a broader investor base. Large investors wait for liquidity events to establish positions. ## Long-term investors saw opportunity Some major investors viewed this period as an opportunity to buy SpaceX at lower prices. Institutions like Morgan Stanley have described SpaceX as a 'generational compounder'. The company's 92% year-over-year revenue growth and intact growth thesis boosted investor confidence. ## Unexpected stock rally Amid all these factors, SpaceX shares recovered after a slight dip on Thursday, closing 6% higher. This performance was recorded as a positive surprise against market expectations. Shares rose above $110, recouping some of recent losses. ## SpaceX's unique liquidity model SpaceX implements a biannual stock buyback program to provide liquidity to employees without going public. This model, recently popularized by companies like Anthropic, allows employees to sell portions of their shares back to the company. This system proved effective in preventing major selling pressure. ## An important market lesson The SpaceX example showed that market expectations don't always materialize. A well-structured liquidity program and long-term investor confidence can prevent potential crises. This event demonstrated that the impact of employee stock sales in tech companies may be overstated. ## Sources covering this story - https://fortune.com/2026/08/07/why-did-spacex-stock-rise-after-selloff/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._