SpaceX shares climbed 9.7% on Wednesday to about $146.15, extending the stock’s rebound from its Aug. 3 low to roughly 40% in 10 days. The report cited several drivers behind the move: Elon Musk’s emphasis on the company’s AI strategy, the release of the latest Grok 4.6 model, and a retreat by short sellers that had previously built large bearish positions.
Data from S3 Partners showed short interest had fallen to about 11% of SpaceX’s publicly traded shares by Wednesday, down sharply from a peak of 34% last week. Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, said short sellers had little capital left to add to their positions, noting that any single trade can only absorb a limited amount of money.
As the stock rebounded, some bearish investors began buying back borrowed shares to close out their positions. That short covering can add extra demand and amplify price gains. Still, the report noted that more tradable shares may enter the market soon, with roughly 319 million shares expected to become available on Aug. 20 and nearly 700 million shares potentially unlocking in both September and October, a schedule that could bring fresh volatility to SPCX.
SpaceX shares rose 9.7% on Wednesday to about $146.15, taking the stock’s gain from its Aug. 3 low to roughly 40%, according to BlockBeats.
The report said the rebound was driven by several factors, including Elon Musk’s renewed emphasis on AI strategy, the company’s release of the latest Grok 4.6 model, and the exit of a large amount of short-side capital from the trade.
Short interest has dropped sharply
Data from S3 Partners showed that, as of Wednesday, short interest had fallen to about 11% of SpaceX’s publicly traded shares, well below last week’s peak of 34%.
Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, said: 「Short sellers don’t have much ammunition left. After all, the amount of capital that can be committed to a single trade is limited.」
With the stock rebounding, some short sellers have started buying shares back. Investors who short a stock must repurchase the shares they previously borrowed and sold in order to close their positions, and that buying can add to the upward move.
More shares may soon become tradable
The report also noted that, according to the company’s prospectus, about 319 million shares are expected to become tradable on Aug. 20. In September and October, close to 700 million shares may be unlocked in each month. The report said SPCX could see renewed price volatility at that stage.
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