Short interest in SpaceX has surged to roughly 29% of the company's public float, representing about $25 billion in bearish bets, as shares fell below their $135 IPO price for the first time in July.
Short sellers have sharply escalated their bets against SpaceX in the weeks since the company's public debut, pushing bearish positioning to nearly a third of the tradable float even as the stock slips below its initial offering price.
Approximately 185 million SpaceX shares are currently sold short, representing roughly 29% of the company's publicly tradable float and about $25 billion in bearish wagers, according to data from S3 Partners. That figure has ballooned from an estimated 40 million shares — equivalent to roughly 5% to 7% of the float — just three weeks ago.
"We are seeing continuous demand from short sellers building speculative positions since the IPO," Matthew Unterman, head of research at S3, told CNBC.
SpaceX shares have fallen approximately 20% in July and briefly dipped below the company's $135 IPO price on Wednesday for the first time since its June 12 Nasdaq debut. The stock last traded around $133 per share.
The sharp rise in short interest reflects mounting pressure on a stock that drew significant enthusiasm at its initial offering. SpaceX's public float at launch represented only about 5% of its roughly 13 billion shares outstanding, leaving the vast majority of stock still subject to lockup restrictions, according to KeyBanc Capital Markets.
That dynamic is drawing particular attention from traders positioning ahead of a series of scheduled lockup expirations. KeyBanc estimated the first major unlock could arrive around the company's second-quarter earnings report, at which point about 11% of outstanding shares may become eligible for sale.
Additional tranches of roughly 4% each are scheduled for release beginning approximately 70 days after the IPO, with further unlocks tied to performance milestones and the company's third-quarter earnings, KeyBanc said.
The single largest block remains CEO Elon Musk's stake, which represents about 42% of shares outstanding and is locked up until June 2027.
Beyond the lockup calendar, near-term sentiment may also hinge on operational developments. The company's 13th Starship test flight is slated for Thursday, an event that analysts say could influence investor positioning in either direction.
The combination of a compressed public float, a steep post-IPO decline, and a multi-stage lockup schedule has created conditions that short sellers appear eager to exploit — even as the company's core launch and satellite businesses remain operationally active. How those lockup tranches are absorbed by the market in the coming months will likely determine whether bearish pressure persists or eases as more shares enter circulation.
Jay Goldberg is a staff writer at TechEchelon covering technology, markets, and policy. He files the breaking news and deal coverage that move the publication's core desks.
More from Jay →SK Hynix shares jumped more than 11% on Wednesday, leading a rebound across Asian technology stocks after the chipmaker's biggest-ever single-day drop, even as debate over AI market valuations and IBM's 25% plunge sharpened investor focus on where AI spending is actually flowing.
Frontier Airlines will debut Starlink satellite Wi-Fi in early 2027, joining four other budget carriers in a deal covering more than 1,000 aircraft — the latest expansion for SpaceX's fast-growing in-flight internet business.
Chipotle opened its first restaurant in Mexico on Thursday in the Monterrey metropolitan area, marking the fast-casual chain's entry into the country under a development agreement with restaurant group Alsea.
Written for readers who already know the basics — markets, AI, and the policy decisions that shape both.