Bets against SpaceX grow to 32% of float as Elon Musk warns short sellers won't survive
SpaceX is currently facing a massive surge in short interest. Data from S3 Partners shows that bearish bets now account for 32% of the company's publicly tradable shares. This represents roughly 206 million shares sold short with a total notional value of approximately $25 billion. The rapid increase in short activity follows a period of stock volatility and comes just weeks after the company went public.
Elon Musk addressed the situation directly on X. He stated that the survival probability for firms holding significant short positions against the company is very low. Musk maintained his long-term outlook, claiming that SpaceX will reach a valuation higher than Earth if the firm meets its goals.
The timing of these bets is critical as the company approaches its first quarterly earnings report as a public entity on August 4. Investors are closely watching for performance metrics and the impact of upcoming lock-up expirations. While some analysts reiterate an outperform rating on the stock, market participants remain divided over whether the current valuation accounts for future growth in launch services and Starlink operations.
SpaceX shares rose 3% in recent trading, breaking a seven-session slide. The stock currently sits around $124 per share, remaining below its $135 IPO price. Market watchers expect significant movement following the August earnings release, which serves as a major test for both bulls and short sellers in the aerospace sector.