SpaceX Stock Plunges from $225 to $124 in One Month as Short Sellers Gain $4-8.7B

SpaceX stock has collapsed over 40% in just one month since its June 12 IPO at $135 per share, with prices falling from a peak of $225 to around $124 as of mid-July, according to market data. The company's IPO raised a record $75 billion, and shares initially surged to a market valuation exceeding $2.6 trillion. However, short sellers have rapidly accumulated positions, growing from 5-7% of float to around 30%, accumulating an estimated $4 billion to $8.7 billion in paper profits.

The sharp reversal reflects growing concerns about SpaceX's financial fundamentals. The company reported 2025 revenue of $18.7 billion against a net loss of $4.9 billion; first-quarter 2026 saw revenue of under $4.7 billion but a quarterly loss of $4.276 billion. At IPO, SpaceX commanded a price-to-sales multiple of 90x, far exceeding Tesla's 15x multiple. Investors and analysts, including short-seller George Noble who set a $30 price target and veteran investor Michael Burry, have questioned whether such valuations are sustainable. Additionally, massive stock unlocks expected in coming months—potentially increasing tradable shares from 5% to 40% of total shares—pose significant downward pressure.