Key Points
- SPCX shares increased 1% during premarket trading on Tuesday, attempting to break a seven-day decline of 21%
- Elon Musk issued a direct warning to short sellers via X, claiming their chances of success are minimal
- Approximately 17% of the company’s available shares are currently held in short positions ā significantly higher than Apple’s 1%
- The aerospace company canceled a Falcon 9 mission with 24 Starlink satellites Monday, along with postponing its 13th Starship test
- Additional shares are set to enter trading circulation following the Q2 earnings release scheduled for August 4, sparking concerns about potential selloffs from early backers
Shares of SpaceX were changing hands at $121.02 during premarket hours on Tuesday, marking a 1% increase as the stock attempted to halt a week-long downturn that erased 21% of its market value. The aerospace firm’s shares now trade approximately 47% below their peak of nearly $226 and have settled beneath the $135 initial public offering price for three consecutive sessions.
Space Exploration Technologies Corp., SPCX
Tuesday’s modest gain followed a challenging day on Monday. The company called off a Falcon 9 mission scheduled to deploy 24 Starlink satellites just moments before liftoff. SpaceX confirmed the cargo remained undamaged. Additionally, the firm postponed its 13th Starship test flight due to an engine malfunction. The experimental launch has been rescheduled for July 23.
With more than 80 Falcon 9 missions completed in 2026 alone, launch postponements are not uncommon. Starship remains in its testing phase ā the fully reusable launch system aims to reduce orbital delivery expenses by approximately 90% compared to Falcon 9 operations.
In a late Monday post on X, Musk addressed short sellers with a stark message, implying their prospects are grim.
Elevated Short Positions Create Potential Squeeze Scenario
Roughly 17% of SpaceX’s tradable shares are currently held in short positions. This represents an unusually elevated level for a major technology corporation. By contrast, Apple maintains short interest at approximately 1%.
The substantial short interest partially stems from structural factors. A significant portion of SpaceX shares remains locked up with original investors under trading limitations. The limited float available for trading magnifies the short interest percentage.
When short interest reaches these elevated levels, the conditions for a short squeeze intensify. Should the stock begin appreciating, short sellers may scramble to close their positions through buying, potentially accelerating upward price momentum.
Musk has a well-documented record of confronting short sellers publicly ā particularly during Tesla’s ascent, where bearish bets have resulted in an estimated $27 billion in losses since June 2021. His recent statement on X mirrors previous tactics.
Quarterly Results and Share Unlock Timeline Draw Attention
A larger supply of shares is anticipated to enter circulation after SpaceX unveils its Q2 financial results on August 4. Original investors previously barred from selling may begin liquidating positions, contributing to the recent downward pressure on shares.
The company designed its public offering with a staggered share release mechanism instead of a standard six-month lockup period, resulting in shares entering the market in multiple phases over time.
In the near term, a successful Starship test on July 23 could provide positive momentum for the stock. The Q2 earnings announcement on August 4 represents the next significant market-moving event.
Musk’s public statement arrived as SpaceX shares traded at their weakest levels since the company’s debut on public markets.
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