Short sellers betting against SpaceX have accumulated roughly $15.5 billion in paper profits since the company listed in mid-June, based on analytics compiled through Tuesday by Ortex Technologies. The gains reflect a slide in SpaceX shares from a post-IPO peak to levels under the initial offering price.
Following a post-IPO high of $225.64, SpaceX shares fell below the $135 IPO price and continued to weaken, briefly strengthening at times before declining further. On Wednesday the stock reached a new low of $115.26, reflecting the recent downward pressure.
Ortex data through Tuesday showed about 360 million SpaceX shares were out on loan, representing roughly 56% of the companys free float. Short sellers borrow shares, sell them, and later repurchase them at lower prices to close their positions and capture a profit. The scale of borrowings indicates a concentrated bearish stance among investors managing short positions.
"There is no sign of short sellers taking profits on SpaceX," Ortex co-founder Peter Hillerberg said. "If anything they are leaning in harder,"
SpaceX did not immediately respond to a request for comment on the trading activity or the Ortex figures.
Elon Musk addressed the situation publicly on X, posting that "The survival probability of firms who maintain a significant short position in SpaceX over time is very low." The remark underscores the public attention and contention surrounding concentrated short interest in the shares.
Analysts and market observers point to SpaceXs elevated valuation as a magnet for short sellers who question the rich price. At the same time, robust interest from both retail and institutional investors and Mr. Musks record of confronting short sellers amplify the risk profile for those taking large bearish positions.
The weakness in SpaceX equity also ties into broader investor concerns about debt-funded spending on artificial intelligence. The article notes that Tesla, another company controlled by Mr. Musk, reported negative free cash flow in the second quarter for the first time in over two years as it accelerated outlays for AI infrastructure, battery capacity, robotaxis, and next-generation manufacturing. Those developments appear to factor into sentiment toward related equities and capital allocation among technology and automotive market participants.
Context and market implications
The concentration of shares on loan and the significant unrealized profit for short sellers highlight both the magnitude of bearish positioning and the volatility that can accompany highly traded, high-visibility stocks tied to major technology and industrial plays. The data suggest active engagement from speculative and institutional accounts as market participants weigh valuation, funding priorities, and corporate strategy.