SpaceX (SPCX) has set a date for its first earnings report as a publicly traded company.
The commercial space company run by Elon Musk, which went public in June of this year, will deliver its first financial results on Aug. 4.
That date triggers the company’s unique lock-up period, which will allow insiders to begin selling shares earlier than the typical 180-day period.
In other words, the Aug. 4 earnings report could trigger massive selling of the stock by SpaceX employees, early investors, and institutions that hold a substantial number of shares.
The first earnings report paves the way for investors to sell 20% of their eligible locked-up stock, a total of 911.5 million shares worth $112.6 billion U.S., beginning on Aug. 6.
An additional 10% of shares could be freed up if the stock closes at least 30% above its initial public offering (IPO) price for five of the 10 trading days heading into the earnings report.
News of the first earnings report comes with SpaceX stock down nearly 50% from its intraday high of $225.64 U.S. per share reached on June 16, shortly after the company’s IPO.
Elon Musk’s net worth, which soared above $1 trillion U.S. on June 12, now stands at $786 billion U.S., according to Forbes’ Billionaires Index.
SPCX stock has also been targeted by short sellers, with about 30% of the shares sold short, meaning traders are betting that the price will fall further.
The decline in SpaceX’s stock also comes after the company recently canceled multiple rocket launches that had been planned.
SpaceX went public on June 12, raising a record $85.7 billion U.S. in the biggest IPO ever, pricing shares at $135 U.S. each.
The stock closed on July 21 at $123.54 U.S. per share.
