SpaceX Stock Faces Pressure as Short Seller Targets SPCX

The SpaceX stock has been on the investors’ radar since its blockbuster IPO earlier this month. However, following its successful debut and initial hype, it seems that the investors’ interest is waning.

For context, the SPCX stock has continued to face pressure, falling more than 25% over the past five trading sessions. In addition, the recent reports showed that short sellers are also targeting Elon Musk’s SpaceX stock, which might continue to hinder its much-anticipated rally ahead.

Short Sellers Ramp Up Bets Against SPCX

The sharp decline in SpaceX shares has attracted growing attention from bearish traders. SPCX has lost more than 25% over the last five trading sessions and now trades roughly 30% below its post-IPO peak.

Amid this, a recent report from Reuters, citing Ortex data, has fueled speculations. According to data from Ortex Technologies, short interest in SpaceX climbed to 13% of the stock’s publicly tradable shares.

That figure stood at 8% just at the prior trading session of SPCX. The jump highlights a surge in investors wagering on additional downside.

Meanwhile, Ortex co-founder Peter Hillerberg told Reuters that short interest is building unusually fast for a company that has been public for only a few weeks. He noted that the increase reflects a rising number of traders positioning for a steeper decline in the stock price.

In addition, the trend comes as broader market weakness and profit-taking have weighed on newly listed shares. Many investors who participated in the IPO rally are now reassessing valuation levels after the stock’s rapid climb and subsequent pullback. Besides, it also comes in tandem with the recent crypto market crash.

SpaceX Valuation Draws Both Bulls & Bears

The SPCX stock price has lost another 1.2% today and fell to $154.14, while its five-day loss is recorded at around 26.5%. However, despite the losses, the company still boasts a market cap of $2.056 trillion, which has caught the eyes of traders.

Such a massive valuation naturally attracts short sellers looking for opportunities in overextended stocks. At the same time, betting against Elon Musk-linked companies has often proved risky.

However, despite the bearish sentiment, analysts caution that short sellers face meaningful risks. The limited public float of SpaceX could trigger a powerful short squeeze for the SPCX stock.

With approximately 83 million shares sold short and average daily trading volume around 270 million shares, a sudden rally could force short sellers to buy back stock quickly. That buying activity could amplify gains and push the SpaceX shares significantly higher.

Meanwhile, the analysts have shared a mixed outlook for the SPCX stock, with KeyBanc analysts recently covering the shares with a “sector weight” rating. In addition, the firm has also gained notable traction after it announced that it would raise $20 billion through a bond sale recently.