Short sellers load up against SpaceX as stock drops below IPO price

Key Points:

• Short sellers have significantly increased their bets against SpaceX, with about 185 million shares sold short, representing roughly 29% of the company's public float and approximately $25 billion in bearish wagers.
• This short interest surged from an estimated 40 million shares (5%-7% of the float) just three weeks ago, coinciding with SpaceX shares falling about 20% in July and briefly dipping below the $135 IPO price.
• The increase in bearish positioning comes ahead of a lockup schedule that will gradually release more shares into the market, starting with about 11% becoming eligible for sale around the second-quarter earnings report.
• Additional share unlocks are planned in tranches of roughly 4% each, tied to time-based schedules and performance milestones, while Elon Musk's 42% stake remains locked until June 2027.
• SpaceX's upcoming 13th Starship test flight, scheduled for Thursday, is a key event that could impact investor sentiment and the stock's performance.