SpaceX's stock price has fallen for the first time. Why is the pressure on the company mounting?

Shares of Elon Musk’s aerospace corporation SpaceX are down for the first time since its IPO—on June 17, they hit a low of $192.50 per share, down 4.6% from the previous close. They later recovered some of those losses and, at the time of publication, were down 2.6%, trading around $196 per share. At their peak since the IPO, SpaceX shares surged to $213, representing a gain of more than 40% compared to the offering price.

Traders, Barron's notes, are already pricing in potential downward pressure on Musk's company's stock price. Research firm AgentSmyth has detected activity in September put options, which may indicate expectations of a decline in the stock price when the supply increases (SpaceX shares are currently subject to restrictions that prevent insiders and early investors from selling their shares during the post-IPO lock-up period). Gary Black, co-founder of Future Fund Active ETF, called the aerospace company’s current stock price “artificially inflated” due to the existing selling restrictions and the virtual impossibility of taking a short position.

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