Key Takeaways
- Bearish traders have accumulated approximately $8.7 billion in unrealized gains following SpaceX’s market debut
- Shares of SPCX dipped beneath the $135 IPO level on Wednesday in a historic first
- Nearly half of the company’s available shares—49% of the free float—are currently on loan
- Short interest stands at 31% of SPCX stock—a stark contrast to Nvidia’s mere 1%
- Despite bearish sentiment, analyst consensus remains at Strong Buy with a $247.32 price objective
Shares of SpaceX (SPCX) were hovering around $136.28 during Thursday’s session, barely maintaining ground above the company’s $135 initial offering price following a momentary breach of that threshold on Wednesday. The stock has shed 10% in the past five trading days and has retreated 16% from its debut valuation.
Space Exploration Technologies Corp., SPCX
Bearish investors have intensified their positions throughout the decline. From the stock’s $225.64 post-IPO zenith, short sellers continued building their stakes instead of banking their returns.
“The journey for SpaceX short sellers has been turbulent, but they’ve ultimately come out on top,” stated Peter Hillerberg, co-founder at Ortex Technologies. “Instead of securing profits, they maintained conviction and expanded positions throughout the downturn.”
Ortex data reveals that approximately 49% of SpaceX’s available shares are currently borrowed, with the overwhelming majority presumed to fuel short strategies.
The 31% short interest figure is extraordinary for any publicly traded entity, particularly one that completed its IPO merely weeks ago.
What’s Driving the Bearish Sentiment
The company’s IPO filing disclosed that SpaceX has yet to achieve profitability. Financial statements showed a $4.9 billion deficit for 2025 and an additional $4.3 billion shortfall during Q1 of this year alone. Given the company’s $1.78 trillion market capitalization, skeptics argue the valuation significantly exceeds what fundamentals support.
Worries surrounding debt-financed artificial intelligence expenditures have further pressured the stock.
SpaceX is scheduled to deliver its inaugural earnings report as a publicly traded entity in early August. This announcement will serve as the initial crucial benchmark for whether operational results can validate current pricing.
The magnitude of short positions creates substantial volatility potential. According to Ortex’s calculations, each $1 fluctuation in SPCX translates to over $300 million in profit or loss for bearish positions. This dynamic works in reverse as well—any substantial upward movement could spark a devastating short squeeze.
Optimistic Analysts Maintain Conviction
Despite the bearish activity, many remain bullish on SpaceX. Across 28 Wall Street analysts covering SPCX, the consensus rating sits at Strong Buy, comprising 23 Buy recommendations, four Hold ratings, and a single Sell rating.
The mean price target of $247.32 suggests potential upside of approximately 83% from present trading levels.
Demand from both retail investors and institutional buyers continues to show resilience, while CEO Elon Musk has repeatedly demonstrated his willingness to challenge short sellers aggressively.
SpaceX did not provide comment when contacted. On Thursday afternoon, SPCX shares were trading up roughly 1% at $136.28.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
