SpaceX has experienced a notable drop in its stock price, losing about 28% from its peak on June 16, which translates to a loss of hundreds of billions in market value. This decline has not led to a surge in short selling; currently, only about 40 million shares, or 5% to 7% of the publicly tradable float of approximately 625 million shares, are sold short.
This is relatively modest compared to over 60 companies in the S&P 500 that have higher short interest. The availability of over 30 million shares for borrowing and low borrowing costs, with annualized fees below 1%, suggest that the market is not experiencing a supply constraint for short selling.
Matthew Unterman from S3 Partners noted that the current market behavior resembles normal price discovery rather than a classic short-squeeze scenario. Additionally, even prominent investors like Michael Burry have refrained from shorting SpaceX, indicating a cautious approach among traders towards a company that remains a significant growth story with a dedicated retail investor following