stocks
SpaceX short sellers are running out of bullets as stock rebounds more than 40% off low
Short interest in SpaceX fell to about 11% of the company's publicly traded shares Wednesday, down sharply from a peak of 34% last week, according to S3.
TL;DR
- Short interest in SpaceX has fallen to approximately 11% from a peak of 34% last week.
- This decline is due to short sellers closing positions and an expansion of the tradable float after a major lockup expiration.
- SpaceX shares have rebounded sharply, rising about 10% above their IPO price and 41% above their recent low.
- The stock experienced a post-earnings sell-off due to concerns over high capital expenditures relative to revenue.
- An initial lockup expiration made over 911 million shares eligible for trading, increasing the float.
- Further lockup expirations in August, September, and October could create future volatility and opportunities for short selling.