SpaceX Short Interest Spikes as Traders Bet on Further Declines

The surge in short-selling activity, identified by Ortex Technologies, comes as the stock trades nearly 30% below its post-IPO peak. Ortex co-founder Peter Hillerberg noted the pace of these bets is unusual for a company only weeks into its public tenure. While profit-taking across risk assets has fueled the retreat, the stock’s limited supply of tradable shares remains a critical variable. With approximately 83 million shares sold short against an average daily volume of 270 million, any sudden buying pressure could force a rapid repurchase of shares, triggering a squeeze.

Adding to the volatility is the prospect of a massive expansion in share supply. Economist Peter Schiff warned that the public float could grow from 640 million to 7.5 billion shares by December 8. Such a dilution would likely intensify selling pressure, countering the optimistic growth narratives surrounding Starlink and SpaceX’s launch dominance. Susquehanna recently initiated coverage with a neutral rating and a $170 price target, noting that while the long-term outlook remains robust, the current valuation appears to have priced in aggressive growth expectations prematurely. SPCX closed at $154.54 amid news of a $20 billion bond offering, leaving investors to weigh the company’s $2.03 trillion market cap against the looming supply constraints.