Bearish investors increased their positions as the rocket and AI company fell nearly 49% from its post-listing peak.
MARKET INSIDER — Short sellers betting against SpaceX have accumulated an estimated $15.5 billion in unrealized profits since its June IPO, as the stock’s sharp reversal erased the gains from its blockbuster market debut.
SpaceX shares fell to a record low of $115.26 on Wednesday, about 15% below the $135 IPO price and nearly 49% below their post-listing peak of $225.64, according to market data. The decline reflects mounting concern about the company’s valuation and capital-intensive expansion into artificial intelligence.
Key highlights
- SpaceX short sellers held an estimated $15.5 billion in paper profits.
- Shares touched a record low of $115.26, nearly 49% below their peak.
- Approximately 360 million shares, equivalent to 56% of the free float, were on loan.
- Short sellers continued increasing their positions despite substantial gains.
- Elevated AI investment and valuation concerns have weighed on sentiment.
Ortex Technologies said there was no indication that bearish investors were taking profits. “If anything they are leaning in harder,” co-founder Peter Hillerberg said.
Shares on loan are not identical to confirmed short interest because borrowed stock may be used for hedging or other strategies. Nevertheless, the unusually high loan level indicates substantial demand for bearish exposure.
SpaceX’s valuation makes it an attractive target for investors questioning whether future earnings can justify its market capitalization. Concerns have also grown around debt-funded AI investment across Elon Musk’s companies, particularly after Tesla reported negative second-quarter free cash flow as spending accelerated on AI infrastructure, batteries, robotaxis and advanced manufacturing.
Shorting SpaceX remains risky because of its volatile trading, strong retail following and institutional demand. Musk warned on X that firms maintaining significant short positions against the company had a low probability of surviving over time.
The original claim that “history says the stock has further to fall” is unsupported by the supplied data. IPO performance varies significantly, and SpaceX’s decline from its peak does not establish that additional losses are inevitable.
