SpaceX short sellers are running out of bullets as stock rebounds more than 40% off low
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- SpaceX short interest fell to ~11% of publicly traded shares from a peak of 34% last week, per S3 Partners, reflecting a combination of bearish investors closing positions and an expanded float
- S3 Partners' Ihor Dusaniwsky said 'shorts that wanted to short are out of bullets,' noting there's 'only so much money you can put into a trade'
- SpaceX shares jumped 11% Wednesday to ~$148, sitting ~10% above its $135 IPO price and ~41% above its Aug. 3 low
- The post-earnings sell-off was triggered by the company's first earnings report disclosing capital expenditures more than twice its revenue
- Last Thursday's lockup expiration freed ~911 million shares (~7% of shares outstanding) for trading — exceeding the 639 million shares sold in the IPO
- Future lockup expirations per the prospectus: 319 million shares on Aug. 20, ~700 million in September, and ~700 million in October
Why it matters: With ~1.7 billion more shares unlocking through October, SpaceX faces a paradox: the expanded float that crushed short interest also gives employees and early investors more selling power. Short covering amplified the 11% Wednesday rally, but future supply could reintroduce selling pressure — or hand bears fresh ammunition if sentiment turns.
Ask SkimNews
