Short interest in SpaceX has reached approximately $23.6 billion, exceeding Tesla's $22 billion, as reported by S3 Partners. This marks a significant shift, as short sellers now hold about 206 million shares of SpaceX, representing 32.2% of its publicly tradable float.
This increase in bearish sentiment comes ahead of SpaceX's quarterly earnings report and the expiration of the first insider lockup, which will allow 20% to 30% of previously restricted shares to be sold. Since its IPO on June 12, SpaceX has seen its market value decline by over $500 billion, falling more than 50% from its peak.
Analysts from Bernstein note that many investors are hesitant to purchase SpaceX shares due to the anticipated increase in available shares, which could rise to 40% of total shares outstanding by December.
This situation is particularly noteworthy as SpaceX is not yet part of major U.S. equity indexes, resulting in a smaller investor base compared to Tesla, which has historically been a favorite target for short sellers