Shorting SpaceX? Investors Flock to Jefferies, Which Was Not Involved in the IPO

According to Odaily, when SpaceX announced its list of IPO underwriters, Jefferies was not among them. However, bearish investors and some senior executives at Jefferies Group view this as a rare opportunity. Sources say that hedge funds that did not invest in SpaceX are contacting Jefferies to inquire about shorting the stock once it goes public.

As the largest U.S. investment bank not involved in the SpaceX IPO, Jefferies is now uniquely positioned to facilitate these trades. While Wall Street firms typically help clients with both bullish and bearish positions on a stock, legal teams may feel uneasy when one department publicly champions a stock while another helps clients short it. Moreover, it is hard to imagine how the famously unpredictable Elon Musk would react if any of the 23 banks underwriting the SpaceX IPO were to "betray" it by facilitating short-selling. (Jinshi)