Short sellers betting against SpaceX have built roughly $15.5 billion in paper profits since the company’s mid-June IPO, according to data from analytics firm Ortex Technologies as of Tuesday. The gains came after SpaceX shares fell below their $135 offering price, extending a drop from the post-IPO high of $225.64.
Ortex said the bearish trade has not eased. Co-founder Peter Hillerberg said there were no signs that short sellers were taking profits on their SpaceX positions. If anything, he said, they were increasing those bets.
The firm’s Tuesday data showed about 360 million SpaceX shares had been lent out, representing around 56% of the free float. The report also cited a comment from Elon Musk last Friday, when he said that firms carrying large short positions in SpaceX over the long term had a very low chance of survival.
Short sellers betting against SpaceX (SPCX.O) have racked up about $15.5 billion in paper profits since the company’s mid-June IPO, according to data from analytics firm Ortex Technologies as of Tuesday. The gains came as the stock fell below its IPO price.
Short sellers borrow shares, sell them, and then seek to buy them back later at a lower price to lock in a profit. As SpaceX shares slid from a post-IPO peak of $225.64 to below the $135 offer price, bearish investors increased their wagers against the company.
“There is currently no sign that short sellers are taking profits on their SpaceX positions,” Ortex co-founder Peter Hillerberg said. “If anything, they are actually increasing their short positions.”
Ortex data through Tuesday also showed that about 360 million SpaceX shares had been lent out, equal to roughly 56% of the free float.
Elon Musk said last Friday that “the probability of survival is very low” for companies that hold large short positions in SpaceX over the long term.
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