The company’s market value has shed approximately $1 trillion from its peak, defying aggressive bullish targets set by major financial institutions. Shares struggled further this week, opening at $127 on Friday following the cancellation of a high-profile Starship test flight. Data from S3 Partners indicates that 192 million shares—roughly 30% of the total float—are currently sold short.
SpaceX short sellers pocket $5 billion as valuation craters
Betting against Elon Musk’s rocket company has become a lucrative trade, with short sellers netting $5 billion in paper profits. The shift follows a dramatic share price slide that pushed the stock below its $135 IPO price, marking a sharp reversal from the initial post-offering euphoria that briefly rivaled Amazon.
Investors are deepening their bearish positions as the notional value of short interest ballooned to $25 billion, up from $4.5 billion in mid-June. According to Ortex cofounder Peter Hillerberg, the stock has been a volatile ride, swinging from significant early losses for skeptics to an $8.7 billion profit by Thursday’s close. While Musk has historically mocked those betting against his ventures, most notably during Tesla’s 2020 short squeeze, the current momentum surrounding SpaceX remains firmly in favor of the bears.
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