SpaceX shares closed below their $135 IPO price for the first time since the company's record-breaking June debut, as a wave of bearish bets pushed short interest to nearly 185 million shares. The stock, which trades under the ticker SPCX on Nasdaq, has lost roughly a third of its value from a post-IPO peak above $200.
Short sellers pile in
Short interest now represents about 29% of the tradable float, up from 40 million shares just three weeks ago. That translates to roughly $25 billion in bearish wagers against the rocket maker. Short sellers are sitting on an estimated $8.7 billion in paper profits, according to data from S3 Partners.
The rapid increase in short selling comes as the company faces a series of operational and market headwinds. A Starship test flight was scrubbed last week after several Raptor engines failed to ignite during the countdown. The next attempt is expected early the following week.
Musk's warning
Elon Musk, SpaceX's founder and CEO, warned that the survival probability of firms with a significant short position in SpaceX is very low. He argued that the scarcity of goods and services will eventually disappear, a claim he first floated earlier this month. Musk stated that SpaceX will be worth more than Earth if it achieves its goals, basing the comparison on the total value of all owned material wealth on Earth, which he pegged at about $600 trillion.
The company's IPO in June raised $75 billion, making it the largest IPO on record. But the stock has struggled to hold its gains amid broader market volatility and concerns about the pace of Starship development.
Technical outlook
The stock is now trading near a level flagged in a falling wedge pattern, a technical formation that some traders interpret as a potential reversal signal. If the pattern holds, a rebound to $158 is possible. But the August share unlocks, which will allow insiders to sell shares for the first time since the IPO, could add further downward pressure.
Musk's comments about SpaceX's long-term value have done little to stem the sell-off. The company's market cap has fallen below $100 billion, down from a peak of roughly $150 billion.
Starship delay
The scrubbed Starship test flight was a setback for SpaceX's most ambitious project. The company had hoped to demonstrate a full-duration static fire of all 33 Raptor engines, but several failed to ignite. Engineers are now working to resolve the issue before the next attempt, which could come as early as Monday or Tuesday.
SpaceX has not provided a revised timeline for the test flight, but the company typically moves quickly after a scrub. The outcome of the next attempt will be closely watched by investors and regulators alike.
