Short sellers have sharply increased their bets against SpaceX as the stock trades back near its IPO price. According to data from S3 Partners cited by BlockBeats on July 16, roughly 185 million SpaceX shares are now sold short, equal to about 29% of the company’s public float and representing around $25 billion in short exposure. Three weeks earlier, estimated short interest stood at only 40 million shares, or about 5% to 7% of the float.
The stock has fallen about 20% since the start of July and on Wednesday briefly dropped below its $135 IPO price for the first time. KeyBanc Capital Markets said only about 5% of SpaceX’s roughly 13 billion total shares were available for public trading at the time of listing, keeping the float relatively tight.
Attention is also turning to upcoming lockup expirations. The first large block of restricted shares could become eligible for sale around the release of second-quarter earnings, when about 11% of total shares may be unlocked. After roughly 70 days of trading, additional tranches representing about 4% of total shares each are also set to come off lockup. Elon Musk’s roughly 42% stake remains locked until June 2027. SpaceX’s 13th Starship test flight is scheduled for Thursday and may shape market sentiment toward the stock.
Short sellers are rapidly building positions against SpaceX as the stock trades back near its IPO price, according to BlockBeats on July 16.
Data from S3 Partners shows that about 185 million SpaceX shares are currently sold short, accounting for roughly 29% of the public float. Those positions are worth about $25 billion. Three weeks ago, estimated short interest was only 40 million shares, or about 5% to 7% of the float.
SpaceX shares are down about 20% so far in July. On Wednesday, the stock briefly fell below its $135 IPO price for the first time.
Small float and upcoming lockup releases draw attention
KeyBanc Capital Markets said that at the time of listing, publicly traded shares made up only about 5% of SpaceX’s roughly 13 billion total shares outstanding.
The first large wave of locked-up shares could become eligible for sale around the release of second-quarter earnings, with about 11% of total shares potentially unlocked at that point. About 70 days after the listing, additional batches representing roughly 4% of total shares each are also expected to become eligible for sale.
Elon Musk’s roughly 42% stake in SpaceX will remain locked until June 2027.
Starship test flight scheduled for Thursday
The company’s 13th Starship test flight is set for Thursday, a development that may influence market sentiment toward the stock.
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