Former Securities and Exchange Commission Chair Gary Gensler warned Tuesday that a “great rebalancing” could unfold in Space Exploration Technologies Corp (NASDAQ:SPCX) shares as lockup restrictions begin to expire, allowing early investors to take profits following the company’s blockbuster public debut.
The ‘Great Rebalancing’
Speaking to Bloomberg Television, Gensler said many of those who backed SpaceX before its IPO are likely to “take risk off the page” as the lockup shares become eligible for sale.
“I call it the great rebalancing,” Gensler said.
Some investors may choose to reduce their exposure by a third, half, or even three-quarters as they lock in gains, he added.
Lockup Expirations Approach
SpaceX is preparing for a series of share unlocks that will gradually increase the stock’s public float over the next 14 months.
According to the lockup schedule, only about 5% of outstanding shares are currently available for trading, with additional shares eligible to float beginning in August and continuing through 2027.
The largest unlock is expected in June 2027, when Elon Musk‘s stake becomes eligible for sale, potentially increasing the stock’s free float dramatically.
Selling Pressure Could Extend Beyond SpaceX
According to Gensler, the impact may not be limited to SpaceX shares if large investors begin taking profits across the market.
“There is an equal and better chance than six months from now we look back, and we say, as all those venture capitalists and sovereign wealth funds start selling those shares, that you see a downward pressure on not just SpaceX, but the whole market,” Gensler said.
The former SEC chair added that potential listings from Anthropic and OpenAI could further test investors’ appetite for AI-related equities as more private-market winners seek access to public capital.
Price Action: Shares of SPCX closed 0.98% higher on Tuesday at $156.11, and gained 0.54% in after-hours trading.
Benzinga edge rankings indicate SPCX has a negative price trend across short, medium and long term.
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