SpaceX short interest hits 40 million shares as bears test Musk

About 40 million SpaceX shares are sold short, representing 5% to 7% of the company's publicly available stock, S3 Partners estimates.

The short interest shows that some investors are betting against the private space company despite its market dominance, though many traders remain reluctant to take a position against Chief Executive Officer Elon Musk, the data provider said.

The 40 million shorted shares represent a notable bet against a company valued at about $350 billion in its most recent secondary transaction. Short sellers face the risk of a squeeze if positive catalysts emerge, given the limited float available for trading on secondary markets.

The reluctance to short Musk reflects his history of overcoming production challenges at both SpaceX and Tesla, and his ability to rally investor confidence, according to people familiar with market positioning. SpaceX controls the majority of the global launch market through its reusable Falcon 9 rocket, which completed more than 100 launches in 2025. The company's Starlink satellite network has surpassed 5 million subscribers globally, generating recurring revenue that supports the broader valuation. Rival Blue Origin has yet to mount a serious challenge in the orbital launch segment.

The short interest positions will be tested by upcoming catalysts, including the next Starship test flight and any progress on a potential Starlink initial public offering. A positive outcome on either front could force short sellers to cover their positions, accelerating any upward move in the shares. For holders, the elevated short interest creates a favorable risk-reward setup if positive news emerges, but leaves the stock vulnerable to further selling if catalysts disappoint.

This article is for informational purposes only and does not constitute investment advice.