Bets against SpaceX grow to 32% of float as Elon Musk warns short sellers won't survive - CNBC

What the report says

CNBC reported that short interest in SpaceX has risen sharply, with S3 Partners estimating that about 206 million shares are being sold short. That equals roughly 32% of the company’s publicly tradable float and represents about $25 billion in bearish notional exposure. CNBC said the figure was up from approximately 185 million shares, or 29% of the float, the prior week, and far above an estimated 40 million shares, or 5% to 7% of the float, about a month earlier.

The increase comes as investors prepare for several potential market-moving events. CNBC cited Matthew Unterman, S3’s head of research, as saying short sellers have continued to add exposure before upcoming catalysts, including SpaceX’s first earnings report as a public company and later lock-up expirations. The company confirmed, according to CNBC, that it plans to release quarterly results after U.S. markets close on Aug. 4.

Elon Musk responded on X by warning that firms maintaining large short positions in SpaceX over time were unlikely to fare well. CNBC reported that the growing bearish trade reflects a broader debate over SpaceX’s valuation and future growth. Supporters point to its launch business, Starlink expansion and artificial intelligence ambitions, while skeptics are focused on whether those prospects are already priced into the stock.

CNBC said SpaceX shares rose about 3% on Tuesday to around $124, ending a seven-session decline, after Macquarie analysts repeated an outperform rating and encouraged buying the recent weakness. The shares remained below the reported $135 IPO price after a post-listing pullback.