SpaceX short interest hits 29 percent of float as shares drop below IPO price
Short sellers have rapidly expanded their bearish positions in SpaceX to nearly a third of its public float, signaling growing investor concern ahead of major upcoming share lockup expirations.
Short sellers have aggressively increased their bearish wagers against SpaceX, driving short interest to nearly a third of the company’s public float. The stock recently slipped below its initial public offering price, reflecting mounting pressure on the aerospace company’s equity.
Approximately 185 million shares are now sold short, representing roughly 29 percent of the publicly tradable float. According to S3 Partners, this equates to about $25 billion in bearish positioning, a massive jump from an estimated 40 million shares just three weeks ago.
Matthew Unterman, head of research at S3, noted the persistent nature of this trend. He stated that there is continuous demand from short sellers building speculative positions since the IPO.
This surge in short activity follows a difficult trading period for the stock. Shares have declined approximately 20 percent in July, briefly dropping below the $135 IPO price on Wednesday before trading around $131 on Thursday.
The heavy short positioning arrives just before a critical series of lockup expirations that could flood the market with new supply. KeyBanc Capital Markets points out that the initial public float comprised only about 5 percent of the roughly 13 billion total shares outstanding.
The first major wave of unlocked shares is expected around the second-quarter earnings report. At that time, approximately 11 percent of outstanding shares may become eligible for sale, according to KeyBanc estimates.
Subsequent releases are scheduled to begin around 70 days post-IPO, with additional tranches of roughly 4 percent each. Further unlocks will be tied to specific performance milestones and the third-quarter earnings report.
Investors are also weighing the long-term overhang of the largest single shareholder. Elon Musk’s stake, which accounts for about 42 percent of outstanding shares, remains locked until June 2027.
Near-term sentiment may hinge on operational developments rather than just financial mechanics. The company’s 13th Starship test flight is scheduled for Thursday, serving as a potential catalyst for the heavily shorted stock.
