SpaceX shares (SPCX) have come under heavy selling pressure just weeks after completing the largest IPO in history, with the stock briefly dipping below its $135 offer price for the first time. Short sellers have reaped an estimated $8.7 billion in paper profits since the debut, reflecting mounting bets against Elon Musk’s space and technology giant.
Short interest in SPCX has surged to 181 million shares, or roughly 31% of the free float, according to S3 Partners and Ortex data. About 49% of the tradable float is currently on loan, much of it used for short positions. These levels are unprecedented for a newly listed company in its first month of trading. Investors added $5 billion worth of short bets in the past week alone, further pressuring the stock.
The bearish stance is fueled by concerns over SpaceX’s stretched valuation. At approximately $1.78 trillion in market capitalization, the company trades at nearly 49 times expected revenue, compared to Tesla’s 15 times. Additionally, SpaceX posted a $4.9 billion loss in 2025 and a $4.3 billion loss in the first quarter of 2026, while also raising $25 billion in debt for AI infrastructure expansion—raising worries about return on capital when interest rates remain high.
Market analysts remain split. While 27 of 32 analysts rate the stock a Strong Buy with an average price target of $247.32 (implying 83% upside), prominent bears like former Fidelity fund manager George Noble predict the price could “completely crash” to around $30. Economist Jay Ritter and CFRA’s Keith Snyder have also reiterated sell ratings. Upcoming catalysts, including the 13th Starship test flight, second-quarter earnings in early August, and the expiration of insider lockup restrictions, could add further volatility.
