Short Sellers Increase Bets as SpaceX Shares Slip to Low of $118
Short sellers have raised their positions in SpaceX, with about 206 million shares now shorted as the stock fell to $118, while the company prepares to release its first quarterly earnings report.
SpaceX's share price fell to a recent low of $118 on Wednesday, prompting a surge in short-selling activity. Financial data firm S3 Partners estimates that roughly 206 million shares, or just under one-third of the publicly tradable float, are currently shorted, up from 185 million the previous week and 40 million a month earlier.
"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," S3 Partners head of research Matthew Unterman told CNBC.
The company is scheduled to publish its inaugural quarterly earnings on August 4, a filing that analysts say will provide insight into its financial health. SpaceX reported a loss of nearly $5 billion for the prior year, and its recently integrated AI unit, rebranded as SpaceXAI, posted a $6.4 billion loss.
Elon Musk, who has previously criticized short sellers of his other ventures, responded on social media, suggesting that firms maintaining large short positions in SpaceX face a low probability of long-term survival.
The upcoming test of the Starship launch system, slated for Thursday, is expected to influence the stock’s volatility regardless of the outcome.