Short Sellers Pile Into SpaceX as Shares Slip Back to IPO Level

Short sellers are aggressively building positions against SpaceX, pushing bearish bets to nearly one-third of the company’s public float as the stock hovers near its initial offering price.

According to data from S3 Partners, roughly 185 million SpaceX shares are currently sold short, representing approximately 29% of the publicly tradable float and roughly $25 billion in notional value. That marks a dramatic escalation from just three weeks ago, when short interest stood at an estimated 40 million shares, or 5% to 7% of the float.

“We are seeing continuous demand from short sellers building speculative positions since the IPO,” said Matthew Unterman, head of research at S3 Partners.

The surge in bearish positioning coincides with a pullback in the share price following a strong debut. SpaceX shares have declined roughly 20% in July and briefly dipped below the $135 IPO price on Wednesday for the first time. The stock last changed hands near $136.

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SpaceX one month

The elevated short interest arrives ahead of a closely watched lockup expiration schedule that could significantly expand the tradable supply over the coming months. SpaceX’s initial float represented only about 5% of its roughly 13 billion shares outstanding, leaving the vast majority of equity subject to restrictions, according to KeyBanc Capital Markets.

KeyBanc estimates the first major unlock could occur around the second-quarter earnings release, when approximately 11% of outstanding shares may become eligible for sale. Additional tranches of roughly 4% each are slated for release beginning around day 70 post-IPO, followed by further unlocks tied to performance milestones and third-quarter results.

The largest single block remains Elon Musk’s stake, which accounts for about 42% of shares outstanding and remains locked until June 2027.

Meanwhile, the company’s 13th Starship test flight is scheduled for Thursday, an event that could sway sentiment toward the shares.

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