Short sellers load up against SpaceX as stock retreats back to IPO price
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- SpaceX short interest reached ~185 million shares (~29% of public float, ~$25 billion in bearish wagers), ballooning from ~40 million shares (~5-7% of float) just three weeks ago, per S3 Partners data
- S3 Partners head of research Matthew Unterman told CNBC there has been "continuous demand from short sellers building speculative positions since the IPO,"
- SpaceX shares fell ~20% in July and briefly slipped below the $135 IPO price on Wednesday for the first time, last trading around $136
- KeyBanc Capital Markets estimated the first major unlock could come around SpaceX's Q2 earnings report, when ~11% of outstanding shares may become eligible for sale, followed by ~4% tranches around day 70 post-IPO
- Elon Musk's ~42% stake in SpaceX remains locked up until June 2027, per the source
- SpaceX's 13th Starship test flight is slated for Thursday, flagged in the source as a potential sentiment catalyst for shares
Why it matters: With 29% of the float already sold short and ~11% of outstanding shares set to unlock around Q2 earnings — roughly doubling the tradable float — short sellers gain more ammunition just as bearish positioning hits record levels. Musk's ~42% stake stays locked until June 2027, but the next several months of tranche releases could weigh on the stock regardless of company performance.
