Space Exploration Technologies (SPCX) is becoming one of Wall Street’s most heavily shorted stocks, even as short sellers rack up gains following the company’s blockbuster IPO. According to data from S3 Partners, traders betting against SpaceX have made nearly $7.3 billion in mark-to-market profits since the stock debuted in June, making it the second-most profitable short trade of 2026, behind only Tesla (TSLA).
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Discover why XOVR identified Kalshi as an attractive private investment opportunity.Despite those gains, bearish investors continue to increase their bets against the company. More than $26 billion worth of SpaceX stock has been sold short, representing roughly 35% of the company’s tradable float, according to S3 Partners.
Founder and CEO Elon Musk has repeatedly criticized investors betting against his companies. Responding to the growing bearish positions in SpaceX, Musk recently warned on social media that the “survival probability” of investors maintaining significant short positions in the company is “very low.”
Why Are Investors Betting Against SpaceX?
SpaceX shares have fallen more than 16% from their IPO price of $135 as investors weigh the company’s premium valuation and upcoming catalysts. The stock’s recent decline has boosted profits for short sellers, while the company still maintains its high market cap of around $1.5 trillion.
S3 Partners Managing Director Ihor Dusaniwsky said investors have continued building short positions since the stock began trading, reflecting skepticism about whether SpaceX can justify its lofty valuation.
Investors are now focused on two major events that could move the stock. SpaceX is scheduled to report its first quarterly earnings as a public company on August 4, giving investors insights into the company’s financial performance. Management’s commentary on AI infrastructure, satellite connectivity, Starlink growth, and future spending plans will likely be closely watched.
Just two days later, on August 6, the company’s first IPO lockup period expires. At that point, approximately 911.5 million shares held by early investors, executives, and insiders, worth roughly $116 billion, will become eligible for sale. The increase in tradable shares could create additional selling pressure if insiders choose to cash out.
AI Stocks Remain Popular Short Targets
SpaceX is not the only AI-related company attracting bearish bets. According to S3 Partners, several technology giants, including Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), Nvidia (NVDA), Broadcom (AVGO), and Micron (MU), rank among the most heavily shorted stocks this year.
The growing short interest reflects investor concerns over elevated valuations and heavy AI-related capital spending. With SpaceX’s earnings and lockup expiration approaching, investors will soon learn whether the bears’ skepticism or the bulls’ optimism proves justified.
Is SPCX a Good Buy Right Now?
On TipRanks, SPCX has a Moderate Buy consensus rating based on 23 Buys, six Holds, and one Sell rating. The average SpaceX price target of $239.04 implies 112.4% upside potential from current levels.
