Short sellers betting against SpaceX have accumulated an estimated $15.5 billion in paper profits after the company's shares fell sharply below their initial public offering (IPO) price, Reuters reported, citing data from analytics firm Ortex Technologies.
The stock has declined 28% over the past month and fell another 6.7% in the previous trading session on July 22. On Wednesday, SpaceX shares dropped to a fresh low of $115.26, extending losses from their post-IPO peak of $225.64. The stock is now trading well below its IPO price of $135.
Short Sellers Increase Bearish Bets
Short selling involves borrowing shares and selling them with the expectation of buying them back later at a lower price, allowing traders to profit from a decline in the stock price.
According to Ortex data through Tuesday, around 360 million SpaceX shares, representing nearly 56% of the company's free float, were on loan to short sellers. The data suggests bearish investors have continued to increase their positions despite the stock's steep decline.
"There is no sign of short sellers taking profits on SpaceX," Ortex co-founder Peter Hillerberg said, according to Reuters report.
"If anything they are leaning in harder," he added.
Why SpaceX Shares Have Fallen?
SpaceX shares have witnessed sharp volatility since listing, with brief rallies followed by renewed selling pressure.
Analysts say the company's premium valuation has made it an attractive target for short sellers who believe the stock remains overvalued despite the recent correction.
Investor concerns have also grown over rising debt-funded spending on artificial intelligence. The broader focus on AI investments has weighed on sentiment surrounding Elon Musk-led companies after Tesla recently reported negative free cash flow for the second quarter, driven by heavy investments in AI infrastructure, battery production, robotaxis and next-generation manufacturing.
Also Read | SpaceX Set To Wipe Out $1 Trillion In Value As Shares Slid
Elon Musk Pushes Back
Despite the growing bearish bets, Elon Musk has dismissed concerns over short sellers.
"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 last week.
Market participants note that betting against Musk-led companies has historically been risky because of strong retail investor support and periods of sharp price recoveries.
The survival probability of firms who maintain a significant short position in SpaceX over time is very low
— Elon Musk (@elonmusk) July 17, 2026
What Investors Are Watching?
With the stock now trading below its IPO price and short interest remaining elevated, investors will closely watch whether SpaceX can stabilise its share price through improved financial performance and progress in its AI and space businesses.
For now, however, the continued decline has strengthened the conviction of bearish traders, who have emerged as the biggest beneficiaries of the stock's post-listing slump.
Also Read | SpaceX Joins Nasdaq 100 Days After Blockbuster IPO
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
