Elon Musk states short positions in SpaceX stock are precarious as 165 million shares remain sold short post-IPO.
SpaceX CEO Elon Musk cautioned short-sellers targeting SPCX, stating their survival probability is “very low” due to potential share price rallies. Currently, 165 million SPCX shares are sold short, exposing investors to unlimited losses if the stock climbs.
Short interest in SpaceX surged following its recent IPO, as traders bet on a post-listing price decline. Musk’s warning aligns with historical patterns where heavily shorted stocks face upward pressure from short-covering or positive sentiment.
The remarks come as SPCX shares fluctuate amid broader market uncertainty, with Musk framing the trades as high-risk. Analysts note short-sellers often target overhyped IPOs, but Musk’s influence may sway sentiment.