Key Takeaways
- SpaceX shares climbed 1% in Tuesday’s premarket session, attempting to halt a seven-session decline totaling 21%
- Elon Musk issued a direct warning to short sellers via X, suggesting unfavorable outcomes for those betting against the company
- Short interest stands at approximately 17% of SpaceX’s tradable shares ā significantly higher than Apple’s roughly 1%
- The company postponed a Falcon 9 mission with 24 Starlink satellites and delayed its 13th Starship test flight on Monday
- Additional shares are set to enter circulation following Q2 earnings on August 4, creating concerns about potential selling pressure from early backers
SpaceX shares were changing hands at $121.02 during Tuesday’s premarket session, reflecting a 1% increase as the stock attempted to break a seven-consecutive-day downturn that erased 21% of shareholder value. The aerospace company’s shares now trade approximately 47% beneath their peak of nearly $226 and have settled under the $135 initial public offering price for three consecutive sessions.
Space Exploration Technologies Corp., SPCX
Tuesday’s modest uptick followed a challenging Monday for the rocket manufacturer. The company called off a Falcon 9 mission scheduled to deploy 24 Starlink satellites moments before liftoff. SpaceX confirmed the payload remained secure. Additionally, the firm postponed its 13th Starship experimental flight due to an engine anomaly. The test is now scheduled for July 23.
With more than 80 Falcon 9 missions completed in 2026 to date, launch aborts are not unprecedented. Starship remains under active development ā the fully reusable vehicle aims to reduce orbital launch expenses by approximately 90% compared to Falcon 9.
On Monday evening, Musk took to X with a message aimed at those shorting the stock, implying unfavorable prospects for bearish investors.
Elevated Short Interest Could Trigger Squeeze
Approximately 17% of SpaceX’s freely tradable shares are currently held in short positions. This represents an abnormally high level for a major technology enterprise. By contrast, Apple’s short interest hovers around 1%.
The elevated short percentage stems partially from structural factors. A substantial portion of SpaceX equity remains locked up by original investors under transfer limitations. With a restricted tradable float, the short interest percentage appears disproportionately large.
When short interest reaches these levels, the probability of a short squeeze intensifies. Should the stock begin climbing, bearish traders may scramble to cover their positions, potentially accelerating upward price momentum.
Musk has repeatedly confronted short sellers publicly ā most notably throughout Tesla’s ascent, where bearish bets have reportedly generated losses exceeding $27 billion since June 2021. His latest X message mirrors that familiar strategy.
Q2 Results and Share Lockup Expiration Loom
Additional shares are anticipated to become tradable after SpaceX releases Q2 financial results on August 4. Original investors previously restricted from liquidating positions may begin selling, contributing to recent downward pressure on the stock.
Rather than implementing a standard six-month lockup period, SpaceX designed its IPO with staggered share releases, resulting in periodic waves of new supply entering the market.
In the near term, a successful Starship test flight on July 23 could provide momentum. The Q2 earnings report on August 4 represents the next significant catalyst.
Musk’s message to short sellers arrived with SpaceX trading at its lowest valuation since going public.
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