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 stock has shed more than a quarter of its value in just over a week, slipping below its initial public offering closing price.
The selling pressure has wiped out roughly $400 billion in market capitalization, marking a stark reversal for the company following its debut.
Despite the sharp pullback from post-IPO highs, many institutional traders remain hesitant to aggressively bet against the company, citing the enduring market influence of CEO Elon Musk.
The reluctance to short underscores the psychological barrier many investors still face when positioning against Musk-led entities, even in the face of significant technical weakness.
The selling pressure has wiped out roughly $400 billion in market capitalization, marking a stark reversal for the company following its debut.
While institutional shorts are moving in, retail sentiment in certain markets remains bullish.