SpaceX Short-Selling Paper Profit Nears $3.88 Billion as Short Interest Hits 28%

According to statistics from financial data company S3 Partners, as the share price of space exploration company SpaceX continues to weaken, the paper profit for investors shorting the stock has climbed to $3.88 billion. Approximately 181 million shares of SpaceX stock are currently shorted, accounting for about 28% of the float, an unusually high short interest level for a major newly listed U.S. company in its first month after going public.

On Wednesday (15th), SpaceX fell 0.60%, closing at $135.27 per share, approaching its initial public offering (IPO) price of $135 per share. The stock briefly dipped to $132.15 during the session, marking its fourth consecutive trading day of decline.

Bearish sentiment toward SpaceX continues to rise ahead of the 13th test flight of Starship and the company’s first quarterly earnings report since going public.

Ihor Dusaniwsky, Managing Director at S3 Partners, stated that the current short interest level for SpaceX is unusually high for a newly listed company in its first month. He noted that recent share price weakness, combined with market expectations that the lock-up period for some shares will soon expire, has prompted investors to further increase their short positions.

S3 data shows that SpaceX’s short interest increased by nearly 37 million shares in just the past week. At current prices, the value of these newly shorted positions is approximately $5 billion.

According to data compiled by Bloomberg, SpaceX’s share price has fallen by about one-third since hitting its closing high on June 16, resulting in a market capitalization loss of approximately $860 billion during that period.

Market attention will now focus on two key upcoming events. The first is the 13th test flight of Starship, which could occur as early as Thursday (16th). The second is SpaceX’s first quarterly earnings report since going public, expected to be released in the coming weeks.

After the first earnings report is published, some shareholders will gain eligibility to sell their shares for the first time. In the following weeks, hundreds of millions of additional shares will gradually be released from lock-up agreements. The market is concerned that the increased supply of shares could further pressure SpaceX’s stock price.