SpaceX Pullback Draws Limited Short-Seller Interest

SpaceX shares have fallen sharply from their postIPO peak, but short sellers are still showing only limited conviction in betting against the company and its CEO, Elon Musk. The stock is down about 12% this week and roughly 28% from its June 16 high, cutting into the gains that followed the company’s June 12 initial public offering. Even so, only about 40 million shares are currently sold short, or roughly 5% to 7% of the publicly tradable float, according to an estimate from S3 Partners. Borrowing conditions also suggest the trade is not heavily constrained, with more than 30 million shares available to borrow and annualized fees below 1%. Analysts cited in the report said the setup looks more like ordinary price discovery than a strong shortsqueeze situation. Some wellknown skeptics, including investor Michael Burry, have also reportedly stayed away from placing a bearish bet on the stock.