SpaceX President and Chief Operating Officer Gwynne Shotwell sold $52.5 million worth of company stock on September 22, ahead of Monday's Starship launch - the rocket's first attempt to reach orbit. According to a Form 4 filed with the Securities and Exchange Commission on September 24, Shotwell exercised stock options to buy 342,170 shares at $8.40 to $19.40 each for approximately $4.5 million, then sold them through Morgan Stanley at $151 to $155 per share. The trades were executed under a Rule 10b5-1 plan adopted on June 23, which locks in sale instructions ahead of time to prevent executives from picking the selling day based on private information. After the sale, Shotwell holds 2.47 million Class A shares directly and 3.11 million through two family trusts, worth roughly $830 million at Friday's close of $148.68. The sale represents about 6% of her total position and marks the first significant stock sale by a SpaceX executive since the company listed on Nasdaq in June.
SpaceX CEO Elon Musk announced on September 24 that the company is preparing for Starship Flight 14 on Monday at 7:15 a.m. Central time from Starbase, Texas, with the fully assembled 124-meter rocket targeting an orbit approximately 275 kilometers above Earth. As reported by The Motley Fool, the flight will carry 26 Starlink V3 satellites instead of dummy mass, marking the vehicle's first revenue-generating mission. Chief Financial Officer Bret Johnsen described this as the first commercial proof point for Starship, with both stages being expendable and the booster splashing down in the Gulf of Mexico. The mission delivered on its key objectives, with Starship reaching roughly 170 miles above Earth, deploying 26 Starlink V3 satellites, and later surviving reentry before flipping upright and landing in the ocean. The launch has already slipped once from its original September 22 date, which had initially sent SpaceX stock up 6% on the news.
SpaceX stock fell 4% to $147.29 at noon ET on Wednesday, marking its sharpest selloff in nearly two months as up to 328 million shares became eligible for sale under the company's staggered IPO lockup structure. According to reports from BeInCrypto, this represents the latest in a series of lockup releases that have created supply-side pressure on the stock. The stock had previously benefited from news of the orbital attempt, which had lifted shares above $150 in mid-September. However, the current decline reflects a confluence of supply-side pressures, including Gwynne Shotwell's disclosed plan to sell 342,170 shares with an aggregate value of nearly $52 million. The pressure appears to be coming from the stock itself, as Starship delivered good news into a market already dealing with a much larger supply of tradable shares. The broader weakness extends beyond SpaceX, with the Procure Space ETF (NASDAQ:UFO) down 2% to $43.22 compared to a 0.89% decline for the Invesco QQQ Trust ETF (NASDAQ:QQQ) to $740.81, suggesting space-related stocks are experiencing greater selling pressure than the broader technology market. More unlocks are scheduled through June 2027, creating ongoing supply pressure on the stock.
SpaceX reportedly has an agreement with the Space Force's Joint Commercial Operations Cell to exchange observations from its Starlink-mounted Stargaze cameras for access to detailed government data on objects in orbit. As reported by TradingView, this data could help SpaceX track debris and protect its satellite fleet, though a Space Force official indicated the government data is restricted to SpaceX's internal use and cannot be used for commercial gain. Rivals reportedly worry that access could nevertheless improve Stargaze's free tracking services for other satellite operators, giving SpaceX an edge they cannot match. The prospectus permits another 7% of the standard lockup pool to be released 105 days after its June 12 date, with further tranches scheduled for October 9 and October 24, followed by a larger release after third-quarter results.
Despite the recent stock decline, Wall Street maintains divided opinions about SpaceX's prospects following the successful Starship launch. As reported by OptionCharts, around 22,700 call contracts are open at the $150 strike for Friday's expiry, while puts are concentrated around $140, indicating trader focus on that level. MoffettNathanson has a Neutral rating with a $142 target, while the average analyst target stands at $222.42, representing a significant gap from current levels. The mission has removed one major technical doubt about Starship's capabilities, but the next challenge is whether SpaceX's current valuation has already priced in this success. The promise of Starship's potential to launch satellites and cargo at far lower costs has helped support extraordinary valuations, with Cathie Wood arguing that even a $1.75 trillion SpaceX valuation could look cheap if Starship works at scale. However, the stock faces valuation questions after a powerful run since the company's June IPO, with investors assigning substantial value to Starlink, launch operations and newer opportunities involving artificial intelligence infrastructure.
