Key facts
- Short sellers have increased their bets against SpaceX.
- Nearly one-third of SpaceX's tradable shares are now sold short.
- Short sellers have incurred approximately $760 million in paper losses.
- The losses are due to a rebound in SpaceX's stock price.
- The increased short interest reflects a bearish sentiment among some investors.
Short sellers have escalated their bets against SpaceX, a private company, to a notable degree. Currently, nearly one-third of SpaceX's tradable shares are sold short. This substantial short interest has already resulted in significant paper losses for these investors, estimated to be approximately $760 million. The losses stem from a rebound in SpaceX's stock price, which has counteracted the short sellers' bearish outlook. The high level of shorting suggests a strong conviction among some market participants that SpaceX's valuation is overextended, despite its operational successes and growth trajectory. The exact number of shares sold short and the total value of these positions are closely watched indicators of market sentiment towards the company.