Scottish Mortgage Investment Trust will have the first opportunity to sell down part of its 19.3% stake in SpaceX when the lock-up period ends tomorrow.
How much it may sell will be influenced by the share price which has come under pressure from the imminent impact of investors cashing in on the 11 June IPO which saw Elon Musk’s satellite and rocket firm valued at more than $2 trillion.
From 6 August SMIT will be able to sell up 20% of its stake. At its AGM in Edinburgh last month, manager Tom Slater told shareholders there are further time-based “unlocks” for the remainder of the holding.
“Our position would become liquid gradually over the next six months,” he said, as he outlined a plan for its holding in SpaceX.
“It is unusual in the history of the trust to have such a concentrated position in one stock and we will seek to address that,” he said.
In overnight Q2 results, SpaceX beat Wall Street’s revenue expectations, but a rise in spending on AI led to a sell-off in the shares.
It reported a 92% rise in second-quarter revenue to $7.8 billion, ahead of analysts’ estimates of $6.8bn. The net loss for the quarter narrowed to $541 million, from $1 billion a year earlier.
However, the shares were marked $8.49, or 6.9%, lower at $116.77 in after-hours trading as investors reacted to ballooning capital expenditure to more than $18bn from $2.83bn a year earlier, mostly on AI infrastructure.
SpaceX went public at $135 a share and began trading at $150. On 16 June, they closed at $201.80 giving the company a market capitalisation of $2.6 trillion, making it the sixth-largest in the world.
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