SpaceX IPO Falters as Short Sellers Target Shares

In mid-July 2026 SpaceX’s shares fell below the $135 IPO price set on June 12, 2026, trading around $133-$136 per share. At the same time, short-seller positions surged to roughly 185 million shares—about 29 % of the publicly tradable float—and represent an estimated $25 billion of bearish wagers, according to analytics firm S3 Partners. The short interest has ballooned from an estimated 40 million shares just three weeks earlier.

CNBCNew York TimesFuturismBBC NewsThe Sydney Morning Herald

SpaceX’s Nasdaq debut was the largest ever, raising $85.7 billion and briefly pushing the company’s market capitalization past $3 trillion, eclipsing Amazon and Microsoft. The IPO price was $135, but the opening price on debut day was $150. Because fewer than 5 % of the company’s outstanding shares are freely tradable, demand was intense and the share price spiked to $225.64 before the recent decline. Investor enthusiasm was fueled by Musk’s promises of space-based AI data centres and a Martian colony, as well as the rapid growth of Starlink, the satellite-internet arm that now generates roughly two-thirds of SpaceX’s revenue.

BBC NewsNew York TimesThe Sydney Morning HeraldCNBCFuturism

• IPO price: $135; Opening price: $150.

New York Times

• Peak price: $225.64 (market cap ? $3 trillion).

New York Times

• Current valuation: ? $1.782 trillion; Share price: $132.62-$136 (varies by report).

New York Times

• Short interest: 185 million shares (? 29 % of float), up from 40 million three weeks prior.

CNBC

• Float tradable: < 5 % of total shares.

CNBC

• Recent price movement: Down ~41 % from peak; 9 % decline over five days; 2 % below IPO price on July 15.

New York Times

• Nasdaq100 inclusion: Recent rule change forced index funds to buy the stock, inflating demand.

The Sydney Morning Herald

Matthew Unterman, head of research at S3 Partners, said the firm is “seeing continuous demand from short sellers building speculative positions since the IPO.” Drew Cupps, portfolio manager at Polen Capital, linked the decline to a “reversal in investor optimism around data center spending.” Interactive Brokers’ chief market analyst Steve Sosnick told Reuters that there “hasn’t been anything that lately to remind people of some of the catalysts for why they bought SpaceX.” Reuters quoted Matthew Maley of Miller Tabak as saying the drop “raises the narrative that the stock is up on fluff, on speculation, on froth, and not on real fundamentals.” SpaceX did not immediately respond to a request for comment.

CNBC

Seasoned investor Jeremy Grantham argued that “[The] Nasdaq has cheated and changed the laws of the land so that they can squeeze it into the Nasdaq index despite the fact it has no earnings.” Carnegie Investment Counsel’s Greg Halter warned that “anybody who bought in early ‘hoping to make a killing’ will be disappointed.” On the WallStreetBets subreddit, a user lamented a 25 % loss in a Roth IRA after options trades at $160 and $145 backfired, describing the experience as a “brutal wake-up call.”

The Sydney Morning Herald

Reddit participants highlighted personal losses, with one posting, “So my Roth IRA is down 25 percent, I went and made a few options trades in Robinhood that also went the other way.” Other commenters called the stock a “meme stock,” suggesting price moves are driven more by internet hype than fundamentals.

Futurism

Price figures differ across outlets: CNBC cites a last trade near $133, the BBC reports $132.62, and Futurism notes the stock “just below $136.” No earnings have been released; the first public earnings report is slated for August, leaving analysts without concrete profitability data.

New York Times

• “We are seeing continuous demand from short sellers building speculative positions since the IPO,” — Matthew Unterman, Head of Research, S3 Partners

CNBC

• “reversal in investor optimism around data center spending.” — Drew Cupps, Portfolio Manager, Polen Capital

New York Times

• “[The] Nasdaq has cheated and changed the laws of the land so that they can squeeze it into the Nasdaq index despite the fact it has no earnings,” — Jeremy Grantham, Investor (podcast)

The Sydney Morning Herald

• “It raises the narrative that the stock is up on fluff, on speculation, on froth, and not on real fundamentals,” — Matthew Maley, Chief Market Strategist, Miller Tabak

Futurism

• “hoping to ‘make a killing’ will be disappointed,” — Greg Halter, Director of Research, Carnegie Investment Counsel

Futurism

SpaceX is expected to publish its first public earnings report in August, a milestone that could clarify the sustainability of its valuation. Analysts will also watch how the recent Starlink price cut in Memphis influences share sentiment, and whether short-seller activity intensifies ahead of earnings.

BBC News