SpaceX stock declined to $118.25 at close on the 23rd (local time), falling below its $135 IPO price after peaking at $225.64 on the 16th of last month, according to Reuters citing Ortex Technologies data on the 23rd (local time). Short sellers holding positions in SpaceX have accumulated $15.5 billion (approximately 22.8 trillion won) in paper profits from the stock's decline. The downturn follows the company's public listing, with 56% of the float—approximately 360 million shares—currently borrowed for short selling per Ortex's tally.
SpaceX Stock Falls Below IPO Price After Peak on the 16th of Last Month
SpaceX stock reached an intraday high of $225.64 on the 16th of last month, the third day of trading following its public listing. The stock reversed course and closed at $118.25 on the 23rd (local time), marking a decline below the $135 IPO price. Reuters reported these figures on the 23rd (local time) based on data compiled by financial analytics firm Ortex Technologies.
Short Sellers Hold 56% of Float With $15.5 Billion Paper Profits
Ortex data shows that 56% of SpaceX's float—approximately 360 million shares—is currently borrowed for short selling. Short sellers have accumulated $15.5 billion (approximately 22.8 trillion won) in paper profits from the stock's decline. Ortex co-founder Peter Hillerberg stated that short sellers show no signs of taking profits, and are instead pushing their bets harder.
Musk Warns Short Sellers on the 17th
SpaceX CEO Elon Musk posted a warning on social media platform X on the 17th, stating that companies maintaining large short positions in SpaceX for extended periods face very low survival probability. Despite this warning, short selling activity has continued.
Lockup Expiration on the 6th of Next Month to Release 911.5 Million Shares
A lockup period on 911.5 million insider-held shares expires on the 6th of next month, potentially releasing up to $116 billion (approximately 171 trillion won) worth of stock into the market. Additional lockup releases are scheduled through early December, which will increase the tradable float from the current 639 million shares to 5.33 billion shares. Analysts note this creates additional room for short seller bets.
Musk's 2018 Tesla Tweet and 2020 Shorts Merchandise
Musk has a history of publicly fighting short sellers. In 2018, he posted a "funding secured" tweet suggesting taking Tesla private, which caused billions of dollars in losses for short sellers. In 2020, when hedge funds suffered massive losses during Tesla's stock surge, Musk mocked short sellers by selling shorts (pants) with anti-short-selling messages printed on them—a play on the word "shorts" having the same pronunciation as short selling.
Reuters noted that while short sellers target SpaceX due to skepticism about its high valuation, retail and institutional investor interest remains strong. The news agency cautioned that betting against Musk can be a risky choice given his track record of publicly confronting short sellers.
FAQ
What happened to SpaceX stock on the 23rd (local time)?
SpaceX stock closed at $118.25 on the 23rd (local time), falling below its $135 IPO price after peaking at $225.64 on the 16th of last month, according to Reuters citing Ortex Technologies data.
How much profit have short sellers made from SpaceX's stock decline?
Short sellers holding positions in SpaceX have accumulated $15.5 billion (approximately 22.8 trillion won) in paper profits from the stock's decline, with 56% of the float—approximately 360 million shares—currently borrowed for short selling per Ortex data.
When does the SpaceX insider lockup period expire?
The lockup period on 911.5 million insider-held shares expires on the 6th of next month, potentially releasing up to $116 billion worth of stock into the market, with additional releases scheduled through early December to increase the float from 639 million to 5.33 billion shares.
