A growing trend among short sellers is emerging as bets against SpaceX increase significantly, now accounting for approximately one-third of the company’s public float. Following the initial public offering (IPO) on June 12, 2026, SpaceX faces considerable bearish pressure, with around 185 million shares sold short—equating to about 29% of its publicly tradable float and nearly $25 billion in short positions, according to S3 Partners. This figure has surged from an estimated 40 million shares, or 5% to 7% of the float, just three weeks prior.
Matthew Unterman, head of research at S3 Partners, noted a sustained demand from short sellers as they build speculative positions since the IPO. The company’s share performance has been underwhelming, with a decline of roughly 20% in July. The stock recently fell below its IPO price of $135 for the first time, trading around $131.
The increased short interest occurs in anticipation of a lockup schedule that may expand the number of shares available for trading in the upcoming months. Currently, the initial public float comprises only 5% of SpaceX’s approximately 13 billion outstanding shares, leaving a substantial portion still subject to lockup restrictions. KeyBanc Capital Markets indicates that the first major unlocking could coincide with the company’s second-quarter earnings report, allowing about 11% of outstanding shares to be sold. Subsequent unlocks will occur based on performance milestones and following the third-quarter earnings report. Elon Musk’s stake, representing about 42% of shares, remains locked until June 2027. SpaceX’s upcoming 13th Starship test flight could further impact market sentiment.
Bullet Points:
- Why this story matters: The escalating short interest reflects investor concerns about SpaceX’s stock performance and potential future fluctuations.
- Key takeaway: The increase in short selling coincides with substantial lockup restrictions, impacting investor sentiment as more shares may become available.
- Opposing viewpoint: Some analysts may argue that SpaceX’s long-term potential remains strong despite current bearish trends, particularly with significant projects ahead.
