Short sellers notch $8.7 bln profit as SpaceX shares dip to IPO price - Reuters
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- Short sellers have profited approximately $8.7 billion as SpaceX shares declined to levels near the IPO price, capitalizing on the selloff
- SpaceX shares dropped below the $135 IPO price, wiping out gains for retail investors who bought at $192.50 and leaving even passive fund holders underwater
- Analysts project a wide divergence in SpaceX’s valuation, with targets ranging from $75 (bear case) to $900 (bull case), reflecting deep uncertainty about Starship’s timeline
- Reuters notes the selloff intensifies ahead of a looming lockup expiry, which could unleash additional selling pressure from early stakeholders
Why it matters: Short sellers gain over $8.7 billion in realized profits while retail and index investors face losses, and the impending lockup expiry threatens further downside—this shift marks a stark reversal from IPO euphoria to near-term risk, with analyst targets now split by over 1,000%.
