Can SpaceX Stock Be Shorted? Elon Musk Warns Bears Face a Massive Squeeze Risk
Elon Musk warns short-sellers could face losses as 165 million SPCX shares are sold short before SpaceX’s second-quarter results.
- Ahead of earnings scheduled for Aug, investors have sold 165 million shares of Space Exploration Technologies they do not own, betting the stock will decline. These short-sellers plan to close positions at lower prices.
- Nasdaq Economic Research found that between 2010 and 2020, over half of newly IPO'd stocks traded below their IPO price six months later. Edward Jones reported technology shares declined an average of 14% from their offering price during the same period.
- In a post on Twitter, Elon Musk warned short-sellers, writing, "The survival probability of firms who maintain a significant short position in SpaceX over time is very low." Musk qualified this by adding, "Over time."
- Statistically, the odds favor short-sellers in the near term despite optimism from the company's largest stakeholder. Musk personally owns nearly half of Space Exploration Technologies stock, giving him substantial influence over market perception.
- SpaceX is not going to $0, and its future existence is not in question. There will come a time when the ticker makes a Bottom that is never revisited, though timing remains uncertain.
11 Articles
11 Articles
SpaceX Short Interest Soars Ahead of Big Share Unlock, Earnings
Short sellers have piled into SpaceX at a rapid pace ahead of two major milestones next week: the company’s first earnings report as a public company and the release of hundreds of millions of locked-up shares.
SCIENCE & TECH: Short sellers make fortune betting against Elon Musk’s SpaceX — but the party won’t last forever
Short sellers have a history of betting against Elon Musk and epically failing, but their latest gamble is paying off and could continue to do so – at least for a while. On The Money has learned. That would be their increasingly profitable bet against SpaceX, Musk’s futuristic mind-meld that combines space exploration with satellite internet service, plus a heavy dose to AI and social media. Yes it’s a mouthful, and the IPO just a few weeks ago …
Short sellers have made a fortune betting against SpaceX — but the party won’t last forever
Short sellers have a history of betting against Elon Musk and epically failing, but their latest gamble is paying off and could continue to do so – at least for a while. On The Money has learned.
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