SpaceX's stock has become a battleground for bears after its IPO debut. Short interest surged to 29% of the float, with bearish bets totaling $25 billion. The $75 billion IPO was followed by intense skepticism over the company's $2 trillion valuation, and traders are now piling into short positions.
29% of float shorted
Data from the first week of trading shows that nearly a third of SpaceX's available shares have been sold short. That's a high level by any standard, and it puts the stock in squeeze territory if positive news breaks. The $25 billion in bearish bets represents a massive wager against the Elon Musk-led company.
The $2 trillion question
At the heart of the short thesis is the valuation. SpaceX went public at a $75 billion valuation, but the market quickly pushed its market cap toward $2 trillion. Traders question whether a rocket and satellite company can justify that kind of number, especially given the capital-intensive nature of the business and the long road to profitability.
Bearish bets pile up
The short interest figure comes from exchange data and was first reported by Crypto Briefing. It shows that institutional and retail traders alike are betting against the stock. The $25 billion in short exposure is one of the largest single-stock bearish positions this year.
With short interest at 29%, any positive catalyst — a new launch contract, a Starship milestone, or better-than-expected earnings — could trigger a squeeze. For now, the bears have the upper hand, but the setup is volatile. The coming weeks will show whether the $2 trillion valuation holds or cracks under pressure.
