SpaceX Shorts Sitting on $15.5 Billion in Paper Profits, Adding to Bearish Bets

Odaily Data analysis firm Ortex Technologies' data as of Tuesday shows that since SpaceX (SPCX.O) went public in mid-June, investors shorting SpaceX stock have realized approximately $15.5 billion in paper profits, as its share price has fallen below the IPO price. Short sellers profit by borrowing shares to sell, then buying them back at a lower price. As SpaceX's stock price dropped from its post-IPO high of $225.64 to below the issue price of $135, they have increased their bearish bets on the company.

"There are currently no signs that short sellers are taking profits on their SpaceX positions," said Ortex co-founder Peter Hillerberg. "If anything, they are adding to their short positions," Hillerberg stated. Ortex data as of Tuesday shows that approximately 360 million SpaceX shares have been lent out, representing about 56% of the float. Musk said last Friday, "Companies that hold large short positions in SpaceX for a long time have a very low probability of survival." (Jin Shi)