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Musk warns SpaceX short sellers as borrowing and short interest rise
Data cited by Yahoo Finance shows about 95% of SpaceX shares available to borrow were loaned out, implying roughly 34% short interest versus the float.
Elon Musk issued another warning to traders betting against SpaceX, responding on X to commentary about a growing bearish position in the rocket, satellite and artificial intelligence company. Yahoo Finance pointed to market data indicating that shorting activity remains crowded even as SpaceX shares have moved down from their post-IPO peak.
S3 Partners data cited by Yahoo Finance showed roughly 95% of SpaceX shares available to borrow had been loaned out, which it said translates into about 34% short interest as a share of the float. Short sellers typically borrow shares, sell them, and then repurchase later to lock in gains, which can turn losses into forced buying if the stock rises.
Yahoo Finance also cited earlier July commentary from Musk, who said the survival probability for firms maintaining a significant short position over time is very low. It added that SpaceX shares have fallen from a post-IPO high of $225.64 to below the company’s $135 offering price.
According to the article, analytics firm Ortex Technologies estimated that short sellers held $15.5 billion in paper profits by late July, and that around 360 million shares, or 56% of the free float, were out on loan. Ortex co-founder Peter Hillerberg said there was no sign short sellers were taking profits and that, if anything, they were leaning in harder.