Short interest in SpaceX has climbed to approximately 40 million shares, representing an estimated 5% to 7% of the publicly tradable float, according to data from S3 Partners.
The rise in bearish positioning comes as the aerospace giant’s shares have shed more than a quarter of their value in just over a week following their post-IPO record high.
Despite the sharp decline, many short sellers remain hesitant to increase their exposure, wary of betting against CEO Elon Musk.
The reluctance reflects the persistent market sentiment that Musk’s influence and the company’s strategic positioning provide a floor for the stock, even amid significant volatility.
Conversely, retail investors are stepping in to buy the dip.
Swedish retail investors, in particular, are aggressively accumulating SpaceX shares, with at least 9,000 new shareholders opening positions at leading online brokers over the past week.