SpaceX's public listing has triggered a significant downturn in its stock value, with shares falling over 25% in five trading sessions. This decline has also impacted space-focused exchange-traded funds (ETFs), such as the Tema Space Innovators ETF (NASA), which is experiencing its worst month in six years. The drop in ETF value is attributed to the evaporation of pre-IPO scarcity premiums and a drain of liquidity from other space stocks. Meanwhile, short interest in SpaceX has climbed to 13% of tradable shares, raising concerns about potential short squeeze risks due to the limited public float.
SpaceX's stock has experienced a sharp decline of over 25% in the five trading sessions following its initial public offering (IPO). This downturn has had a ripple effect on the broader space industry, particularly affecting space-focused exchange-traded funds (ETFs). The Tema Space Innovators ETF (NASA), which indirectly held pre-IPO SpaceX shares, is currently navigating its worst month in six years. The value of this ETF has diminished as the scarcity premium associated with early access to SpaceX shares dissipates. Furthermore, liquidity has been drawn away from other publicly traded space stocks, contributing to the broader market pressure. Analysts are also noting a significant surge in short interest in SpaceX's stock, which has reached 13% of its tradable shares. This elevated short interest, coupled with a limited public float, has led to cautions about potential short squeeze risks. The combination of direct stock price depreciation and indirect impacts on related investment vehicles highlights the immediate market reaction to SpaceX's transition to a publicly traded entity.