Short sellers have significantly increased their positions against SpaceX, with approximately 185 million shares sold short, equating to about 29% of the company's publicly tradable float and representing around $25 billion in bearish bets, according to S3 Partners. This marks a dramatic rise from just 40 million shares, or 5% to 7% of the float, three weeks prior.
The stock has faced challenges since its IPO, dropping about 20% in July and briefly falling below its IPO price of $135. Currently, shares are trading around $136. The increase in short interest coincides with an upcoming lockup period that could release a substantial number of shares for trading, as only about 5% of SpaceX's 13 billion outstanding shares were available at the IPO.
KeyBanc Capital Markets anticipates that the first major unlock could occur around the second-quarter earnings report, potentially allowing 11% of outstanding shares to be sold. Subsequent unlocks are expected to follow, with the largest block of shares, held by Elon Musk, remaining locked until June 2027.
Additionally, SpaceX's upcoming 13th Starship test flight could serve as a catalyst for market sentiment regarding the stock