Short sellers deepen bets against SpaceX

Short sellers in SpaceX are sitting on an estimated $15.5 billion in paper profit based on data through Tuesday, reflecting the stock’s decline since its mid-June initial public offering. The profit figure captures unrealized gains on bearish positions that have moved in favor of traders as the share price has fallen.

Ortex Technologies, which tracks short-selling activity, ties these gains to a large volume of borrowed stock. The data emphasize how quickly short positions have become profitable following the company’s market debut.

Ortex reports that about 360 million SpaceX shares are out on loan, representing roughly 56% of the free float. Shares on loan are a key indicator of short interest, as they are typically borrowed and sold by investors who expect the price to fall.

The scale of borrowing suggests that a significant portion of the tradable stock is being used to express negative views on the company’s near-term prospects. This concentration of short interest has coincided with notable downward moves in the share price.

After the mid-June IPO, SpaceX shares reached a post-IPO high of $225.64 before reversing course. The stock has since slipped below the $135 IPO price, underscoring the change in sentiment since the initial trading sessions.

On Wednesday, the shares dropped to a reported low of $115.26. This decline has amplified mark-to-market gains for short sellers, as the gap between their selling prices and the current market price has widened.

Despite the sizeable paper profits already accumulated, there is no indication that short sellers are broadly closing out their positions. Ortex co-founder Peter Hillerberg said there is no sign of short sellers taking profits on SpaceX and that, if anything, they are leaning in harder.

This stance suggests that many bearish investors are maintaining or adding to positions even after a substantial move in their favor. The combination of a falling share price, elevated shares on loan, and a lack of profit-taking highlights persistent negative positioning in the stock soon after its initial listing.