Key facts
- Short sellers have significantly increased their positions against SpaceX.
- Nearly one-third of SpaceX's tradable shares are now sold short.
- These short positions have resulted in approximately $760 million in paper losses for short sellers.
- The cost to borrow SpaceX shares is around 1%.
Short sellers are significantly increasing their bets against SpaceX, with nearly a third of its tradable shares now sold short. This strategy has already led to approximately $760 million in paper losses for these investors, according to Ortex data. Following an initial surge after its market debut on June 12, SpaceX shares slipped as much as 23%, emboldening short sellers. However, a subsequent rebound has erased earlier paper gains, turning potential profits into losses. The size of the short position could contribute to further volatility, with each $1 swing in SpaceX's share price translating to roughly $200 million in gains or losses for shorts. The cost to borrow SpaceX shares remains relatively low at about 1%. Experts suggest that if the stock price continues to rebound, forced buying by short sellers to close their positions could potentially drive the shares even higher, creating a short squeeze scenario.