((Automatic translation by Reuters using machine learning and generative artificial intelligence, see the following disclaimer:
* SpaceX shares fell to an all-time low of $115.26 on Wednesday.
* According to Ortex, about 360 million SPCX shares were pledged, or 56% of the total.
* Short sellers appear reluctant to trim their bearish positions.
(Added with details and analyst comments throughout the article) Saqib Iqbal Ahmed
Short sellers targeting SpaceX SPCX.O shares now have about $15.5 billion in book gains since the rockets and artificial intelligence company’s IPO in mid-June as its share price fell below its IPO price, according to data from analytics firm Ortex Technologies released Tuesday.
Short sellers, who borrow shares to sell them and then buy them back at a lower price to make a profit, increased their bearish position on SpaceX as the company’s shares fell below its IPO price of $135 after hitting a post-IPO high of $225.64.
SpaceX shares were volatile, experiencing brief gains before falling further. The stock fell to a new low of $115.26 on Wednesday.
“There is no indication that short sellers are taking profits on SpaceX,” said Peter Hillerberg, co-founder of Ortex.
“On the contrary, they even seem to be redoubling their efforts,” he added.
About 360 million SpaceX shares, or about 56% of its outstanding shares, were on loan, according to Ortex data released Tuesday.
SpaceX did not immediately respond to a request for comment.
“The likelihood of survival of companies that maintain a significant short position in SpaceX over the long term is very low,” Elon Musk, SpaceX CEO, wrote in a post published on X on Friday.
SpaceX’s high valuation makes it a target for short sellers skeptical of its high price, but strong interest from retail and institutional investors and Musk’s history of public battles with short sellers make bearish bets on the company a risky proposition.
The weakness in SpaceX shares partly reflects investor concerns about debt-funded AI spending. Tesla, another of Musk’s companies, reported negative free cash flow in the second quarter for the first time in more than two years as the electric vehicle maker increased spending on artificial intelligence infrastructure, battery capacity, robotaxis and next-generation production.