Short sellers targeting SpaceX shares are sitting on an estimated $15.5 billion in paper profit since the rockets-to-AI firm's mid-June initial public offering, as its stock slipped below the IPO price, according to data through Tuesday from analytics firm Ortex Technologies.
Short sellers, who borrow shares to sell them and later buy them back at a lower price for a profit, have pressed their bearish bets on SpaceX as the company's shares slipped below its IPO price of $135 from a post-IPO high of $225.64.
SpaceX shares have been volatile, experiencing brief bouts of strength before slipping further. On Wednesday, the stock dropped to a new low of $115.26.
The weakness in SpaceX shares reflects in part investor concern over debt-funded AI spending. Tesla, another Musk company, reported negative free cash flow in the second quarter for the first time in more than two years as the EV maker accelerated spending on AI infrastructure, battery capacity, robotaxis and next-generation manufacturing.