Short interest in SpaceX has dropped to about 11% of its publicly traded shares, down from a peak of 34% last week, according to S3 Partners. This decline is attributed to bearish investors closing their positions and an increase in the stock's tradable float following the expiration of a lockup period.
Ihor Dusaniwsky, managing director at S3 Partners, noted that 'shorts that wanted to short are out of bullets,' suggesting limited opportunities for further short selling. The stock has rebounded sharply, rising 8% to around $144, which is 7% above its IPO price of $135 and 38% above its low of $104 on August 3.
The initial sell-off was triggered by concerns over high capital expenditures exceeding revenue, attracting short sellers. However, the recent unlocking of over 911 million shares has increased the float, reducing short interest as a percentage of tradable shares.
More shares are set to unlock in the coming months, which could lead to increased volatility and provide opportunities for both selling and shorting, depending on market sentiment