Short sellers have increased their positions against SpaceX, with approximately 206 million shares sold short, representing about 32% of the company's publicly tradable float and totaling around $25 billion in bearish bets. This marks a notable rise from 29% just a week prior and a dramatic increase from 5% to 7% a month ago.
Matthew Unterman, head of research at S3 Partners, noted that this trend is occurring ahead of critical events, including SpaceX's first earnings report as a public company and upcoming lock-up expirations.
Musk responded to the growing short interest by asserting that the likelihood of survival for firms maintaining significant short positions in SpaceX is low, emphasizing his belief in the company's long-term value. SpaceX is set to release its quarterly earnings report on August 4, which will provide investors with insights into its performance since going public.
The stock recently rose about 4%, recovering from a seven-session losing streak, following an outperform rating from analysts at Macquarie, although it remains below its IPO price of $135 after a recent decline