Why it's trending
SpaceX shares hit a record low, triggering massive short seller profits and Musk's warning, drawing investor attention.
SpaceX shares fell to a record low of $115.26 on Wednesday, below its IPO price of $135, as short sellers amassed $15.5 billion in paper profits since the June IPO, according to Ortex Technologies. The stock had peaked at $225.64 post-IPO.
Short interest has surged to 32% of the float, or about 206 million shares, up from 5-7% a month ago, per S3 Partners. Elon Musk warned on X that short sellers have a low survival probability, but bearish bets continue to grow ahead of key catalysts.
SpaceX confirmed it will release its first quarterly earnings on Aug. 4, which could test both bulls and bears. Lock-up expirations may also add pressure. Bulls cite leadership in launch services, Starlink, and AI; skeptics question valuation.
The standoff between Musk and short sellers echoes his history with Tesla shorts. The upcoming earnings report and lock-up expirations will be critical for the stock's direction.
Timeline
- SpaceX IPO
SpaceX went public at $135 per share.
- Stock peaks at $225.64
Shares rose to a high of $225.64 before declining.
- Short interest hits 32%
CNBC reports short interest at 32% of float; Musk warns short sellers.
- Record low $115.26
Shares hit record low; short sellers notch $15.5B profit, per Reuters.
- First earnings report
SpaceX to report quarterly earnings after market close.
Questions people ask
Why is SpaceX stock falling?
Shares fell below IPO price due to short seller pressure and valuation concerns, hitting a record low of $115.26.
How much have short sellers made?
Short sellers have $15.5 billion in paper profits since the IPO, per Ortex Technologies.
What did Elon Musk say?
Musk warned on X that short sellers have a low survival probability, saying SpaceX will be worth more than Earth.
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