SpaceX short sellers book $15.5 billion in paper profits and are increasing their short positions

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

"There are currently no indications that short sellers are taking profits on their SpaceX positions," said Ortex co-founder Peter Hillerberg. "If anything, they are doubling down on their short positions," Hillerberg added. Ortex data as of Tuesday shows that approximately 360 million shares of SpaceX stock 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)