SpaceX (SPCX) Stock Plunges Below IPO Price as Short Sellers Rake in $8.7B

Key Highlights

Table of Contents

Bearish traders have accumulated roughly $8.7 billion in unrealized gains following SpaceX’s market debut last month
SPCX shares temporarily dipped under the $135 IPO price on Wednesday before staging a modest rebound
Approximately 49% of the company’s available shares are currently borrowed, predominantly for short-selling purposes
Short interest stands at 31% of SPCX’s tradable shares — a stark contrast to Nvidia’s mere 1%
Despite bearish sentiment, Wall Street maintains a consensus Strong Buy rating with a $247.32 average target

Shares of SpaceX (SPCX) were changing hands around $136.28 on Thursday, hovering marginally above the company’s $135 initial public offering price after momentarily slipping beneath that threshold a day earlier. The equity has shed 10% in the past five trading sessions and has declined 16% since its debut.

Space Exploration Technologies Corp., SPCX

Bearish investors have intensified their wagers throughout the entire downturn. From the stock’s post-IPO zenith of $225.64, short sellers continued expanding their positions rather than securing their profits.

“SpaceX has proven to be quite volatile for those betting against it, though it’s ultimately worked in their favor,” noted Peter Hillerberg, co-founder at Ortex Technologies. “Instead of cashing out, bearish traders persistently increased their exposure throughout the decline.”

Ortex data indicates that nearly half of SpaceX’s freely traded equity — approximately 49% of the available float — is currently on loan. The analytics firm suggests the overwhelming majority represents short-selling activity.

That 31% short ratio is remarkable for any publicly traded company, particularly one that just completed its IPO weeks ago.

Understanding the Bearish Thesis

The company’s IPO filing disclosed that SpaceX remains unprofitable. Financial statements showed a $4.9 billion deficit in 2025, followed by another $4.3 billion shortfall in just the opening quarter of the current year. With a market capitalization exceeding $1.78 trillion, bears are wagering that fundamentals don’t support current valuations.

Worries surrounding debt-financed artificial intelligence infrastructure investments have additionally pressured the share price.

SpaceX is scheduled to announce its inaugural quarterly results as a publicly traded entity in early August. This earnings report will serve as a critical benchmark for assessing whether operational performance justifies investor expectations.

The magnitude of short positioning introduces significant volatility potential from either direction. Ortex calculates that each one-dollar fluctuation in SPCX translates to over $300 million in profit or loss for the bearish camp. This dynamic creates equal risk — any sudden upward momentum could catalyze a devastating short squeeze.

Optimistic Outlook Persists

Despite heavy short activity, many remain bullish on SpaceX. Across 28 Wall Street equity researchers, SPCX maintains a consensus Strong Buy designation, derived from 23 Buy recommendations, four Hold ratings, and a single Sell opinion.

The consensus price projection of $247.32 suggests approximately 83% appreciation potential from present trading levels.

Both retail and institutional appetite for the shares continues robustly, and CEO Elon Musk has an established track record of confronting short sellers aggressively.

SpaceX declined to provide commentary. By Thursday afternoon, SPCX had climbed roughly 1% to trade at $136.28.

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