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SpaceX Charts Unconventional Path for Insider Share Sales Post-IPO

SpaceX is departing from standard practice with a tiered lock-up structure that permits insiders to begin selling shares weeks after the company's public debut, rather than waiting the typical 180 days.

The phased approach allows insiders to sell up to 20% of eligible locked-up shares following the company's first earnings report for the quarter ending June. An additional 10% becomes available if stock trades at least 30% above the IPO price at that time.

Further tranches unlock on rolling schedules at 70, 90, 105, 120 and 135 days post-IPO, each releasing 7% of shares. When SpaceX reports earnings for the quarter ending September, 28% more becomes available. Any remaining shares fully release at the 180-day mark.

The structure accelerates float expansion, positioning SpaceX for faster inclusion in the Nasdaq 100 index, which now permits eligible companies entry weeks after their IPO.