Short sellers have ramped up bearish bets against SpaceX to roughly 185 million shares, worth an estimated $25 billion in wagers, as the aerospace company's stock retreated below its $135 IPO price this week before recovering slightly. The short interest, representing about 29% of the public float, has surged from just 40 million shares three weeks ago, producing billions in paper profits for traders betting on further declines.
The stock has fallen roughly 20% in July after soaring to a post-IPO high of $225.64, with shares dropping for four consecutive sessions and briefly slipping below $132 on Wednesday. Almost 49% of SpaceX's free float is out on loan, signaling intense demand from short sellers.
A major lockup expiration could release about 11% of outstanding shares around the company's Q2 earnings report in early August, though Elon Musk's 42% stake remains locked until June 2027. SpaceX is preparing for its 13th Starship test flight.