SpaceX short interest hits $25bn ahead of maiden earnings
Bearish wagers against the newly public aerospace company have ballooned to roughly a third of its freely traded shares, setting the stage for a volatile test of its market valuation.
Short sellers have dramatically increased their positions against SpaceX, with wagers now representing roughly a third of its publicly tradable shares. An estimated 206 million shares are currently sold short, a figure valued at about $25 billion, according to data from S3 Partners. This marks a steep escalation from just 40 million shares, or 5% to 7% of the float, a month ago.
The rapid buildup of short interest sets up a crucial test for the newly public company. SpaceX confirmed it will release its first quarterly earnings report on August 4, an event that will finally expose its underlying financial performance to public scrutiny. Additionally, investors are bracing for upcoming lock-up expirations, which threaten to flood the market with newly available shares.
Matthew Unterman, head of research at S3, noted that traders are actively adding bearish exposure ahead of these specific market catalysts. The broader market remains deeply divided over the company's premium valuation. This divide pits investors who champion its dominance in launch services, Starlink, and artificial intelligence against skeptics questioning how much future growth is already priced into the stock.
Elon Musk pushed back against the growing skepticism on social media, warning short sellers of their ultimate demise. "The survival probability of firms who maintain a significant short position in SpaceX over time is very low," he wrote. The chief executive added: "I said SpaceX will be worth more than Earth if we achieve our goals. Obviously true."
Despite the heavy shorting pressure, the stock showed signs of stabilization on Tuesday. Shares climbed roughly 4% to $125, snapping a seven-session losing streak. The rally was supported by Macquarie analysts, who reiterated their outperform rating and urged investors to buy the recent weakness, though the stock remains below its $135 initial public offering price.
