SpaceX shares slip below IPO price, short sellers see $15.5B profit

Key facts

• Short sellers have an estimated $15.5 billion in paper profit on SpaceX shares.
• SpaceX shares have fallen below their initial public offering price.
• The stock's intraday low was $115.26, marking a significant drop from its peak.
• Approximately 56% of SpaceX's free float shares were out on loan.
• Elon Musk commented on the low survival probability for firms with significant short positions in SpaceX.

Short sellers targeting SpaceX shares are sitting on an estimated $15.5 billion in paper profit since the company's mid-June initial public offering, as its stock slipped below the IPO price. According to data from analytics firm Ortex Technologies, SpaceX shares fell to a new low of $115.26 on Wednesday, down from a post-IPO high of $225.64. Ortex co-founder Peter Hillerberg noted that short sellers are not taking profits and are instead increasing their bearish bets. Approximately 56% of SpaceX's free float shares were out on loan. SpaceX CEO Elon Musk commented that firms maintaining significant short positions in SpaceX over time have a very low survival probability. The company's valuation makes it a target for skeptics, but retail and institutional interest, along with Musk's history of opposing short sellers, make bearish bets risky.