Bets against SpaceX grow to 32% of float as Elon Musk warns short sellers won't survive
Short interest in SpaceX has surged to 32% of its float as investors bet against the company ahead of its first public earnings report. Elon Musk has publicly dismissed these investors, warning that betting against the company's long-term vision is a losing strategy.
Why it matters
The high level of short interest reflects significant market skepticism regarding SpaceX's valuation and future growth prospects following its IPO.
Elon Musk warned that investors betting against SpaceX have little chance of survival — even as short sellers boosted their wagers against the company to about one-third of its publicly tradable shares ahead of several key catalysts.
About 206 million SpaceX shares are now sold short, representing roughly 32% of the company's publicly tradable float and about $25 billion in notional bearish bets, according to estimates from S3 Partners. That's up from about 185 million shares, or 29% of the float, just last week , and marks a dramatic increase from an estimated 40 million shares, or roughly 5% to 7% of the float, about a month ago.
"We continue to see short sellers adding exposure ahead of several key upcoming catalysts, including the company's first earnings report as a public company and subsequent lock-up expirations," Matthew Unterman, head of research at S3, told CNBC.
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