Short-sellers bank billions betting against SpaceX
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The news: Short-sellers have made almost USD8 billion as SpaceX shares have nearly halved since peaking on 16 June, according to S3 Partners data cited by Bloomberg.
The context: SpaceX shares have fallen from a high of USD201 to less than USD108 today, putting them more than 20% below the rocket and AI company’s IPO price.
About 30% of SpaceX shares currently available to trade have been sold short, likely earning short sellers billions of dollars in profits, S3 Partners data showed.
Elon Musk’s company will release its first earnings report next week, after which early investors will be allowed to sell 20% of their locked-up shares. The number of shares available to trade is expected to rise from 639 million today to 5.33 billion by the end of the year.
Investors fear the additional supply will unleash a wave of selling and further weigh on the share price. The risk comes amid a broader selloff in AI-related companies and concerns that SpaceX may be overinvesting in its unproven Starship rocket.
