Elon Musk has warned short sellers betting against SpaceX that their survival odds are low, as bearish bets against the space company have surged to 32 percent of its publicly tradable float. About 206 million SpaceX shares are now sold short, representing roughly $25 billion in notional bearish positions, according to S3 Partners.
“The survival probability of firms who maintain a significant short position in SpaceX over time is very low,” Musk wrote in a post on X. “I said SpaceX will be worth more than Earth if we achieve our goals. Obviously true.”
The short interest has climbed dramatically in recent weeks. Just seven days earlier, short sellers held 185 million shares, or 29 percent of the float. About a month ago, short interest stood at only 5 to 7 percent of the float, roughly 40 million shares, according to S3 Partners data.
Matthew Unterman, head of research at S3, told CNBC that short sellers are adding exposure ahead of key upcoming catalysts. “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,” Unterman said.
SpaceX is scheduled to release its first quarterly earnings report as a public company after U.S. markets close on August 4. The results will give investors their first detailed look at the company’s financial performance since its initial public offering in June at $135 per share.
The stock’s weakness has fueled the short-seller activity. SpaceX shares have fallen significantly below their IPO price, trading around $124 and down roughly 33 percent from post-listing highs, according to reporting from July. The decline has raised concerns about potential additional selling pressure once insider lock-up restrictions expire, typically a period when large holders can begin selling shares.
Musk’s warning echoes his past confrontations with Tesla critics, according to MSN. The SpaceX CEO has a history of publicly challenging short sellers and skeptics of his companies. This time, Musk is staking his credibility on SpaceX’s long-term value proposition, suggesting that anyone betting against the company over an extended period faces significant financial risk.
Sources
- CNBC — Short interest data from S3 Partners showing 206 million shares sold short at 32 percent of float, Musk’s statement on X, and details on upcoming earnings and catalysts
- Reuters — SpaceX stock decline below IPO price and lock-up expiry concerns
- MSN — Context on Musk’s past confrontations with Tesla critics
