Space Exploration Technologies Soars Amid Lockup Expiration
Space Exploration Technologies (NASDAQ:SPCX) closed at $133.11, up 15.83%. The stock rose after lockup fears eased, analysts turned more positive, and the company provided an update on its joint Terafab plans with Tesla. Trading volume reached 236.7M shares, coming in about 91% above its three-month average of 124.0M shares. Space Exploration Technologies IPO'd in 2026 and has fallen 17% since going public.
The trading session saw a surge in activity, with over 252.4 million shares exchanged—nearly double the three-month average of 121.0 million shares. The dramatic rise in volume raised questions about whether the company might face downward pressure as more shares became available for trading. However, the unexpected strength of the stock eased some of those worries.
The broader market did not follow the upward trend. The S&P 500 (SNPINDEX:^GSPC) rose 0.59% to 7,756, while the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 1.28% to 26,686. In the aerospace sector, performance was mixed. Rocket Lab (NASDAQ:RKLB) closed at $82.83, up 9.46%, and AST SpaceMobile (NASDAQ:ASTS) closed at $71.94, up 6.80%, as launch and satellite-growth names stayed in focus.
According to S3 Partners, as cited by Nasdaq, short interest in SPCX could be as high as 36% of the tradable float. That suggests some of the recent upward movement may have stemmed from short sellers covering positions after the stock dropped over 10% following its earnings report on Tuesday. While the stock has declined 29% since its 2026 IPO, analysts suggest the long-term fundamentals and vision of the company matter more than short-term volatility. If the company meets its goal of achieving $100 billion in annual recurring revenue by year-end, its $1.5 trillion valuation may appear more justified.
Despite today's gains, investors are being urged to approach the stock with caution. While the resilience of SPCX is a positive sign, the company’s path ahead remains uncertain, and volatility is likely to continue in the near term. Investors are advised to make gradual purchases rather than committing heavily at this stage.