New Delhi, Aug. 5 -- Just days after reporting its first quarterly earnings as a public company, SpaceX now faces an even bigger test. On Thursday, its first IPO lockup period expires, allowing company insiders to sell up to roughly 911.5 million shares for the first time. Here's a look at exactly what a lockup expiration is, how it works, and what it means for investors.

SpaceX shares fell 7% on Wednesday as investors focused on the company's soaring artificial intelligence spending, overshadowing quarterly results that topped Wall Street expectations.

In SpaceX's first earnings report as a public company on Tuesday, Elon Musk's space firm said its capital expenditures jumped sixfold to $18.4 billion in the second quarter. This figure ...