Short-sellers have accumulated a $24 billion position against SpaceX, according to S3 Partners founder Bob Sloan, who called the bet one of the frothiest trades Wall Street has ever seen.
The short position has already generated $7.3 billion in mark-to-market profits for bearish traders since SpaceX's initial public offering, Sloan said. The scale of the wager reflects investor anxiety about the company's valuation ahead of a planned share unlock and earnings release.
Short interest in SpaceX has grown rapidly in recent months, outpacing even Tesla's short position ahead of its earnings cycle, according to data from S3 Partners. The $24 billion figure represents cumulative short exposure across equity and derivatives markets as of late July. Sloan did not specify what triggered the acceleration in short-building, but the timing aligns with the company's approach to unlocking restricted founder shares and releasing quarterly results.
SpaceX, which went public in early 2026 after years of private fundraising, has become one of the most heavily shorted stocks among newly public technology companies. The company trades at a significant premium to its peers in commercial spaceflight and satellite services. Elon Musk, SpaceX's chief executive, has not publicly addressed the short position.
A $24 billion short position against a company worth roughly $210 billion at recent trading levels means bears are betting against 11.4 percent of SpaceX's market capitalization. That concentration rivals some of the most contentious short battles in recent market history.
Short squeezes occur when rising stock prices force short-sellers to buy shares to cover losses, creating additional upward pressure. SpaceX's pre-unlock lockup period and earnings announcement could serve as catalyst events that either vindicate or unwind bearish bets. The extent to which short positions carry margin debt or face tight borrow rates would determine how damaging a rapid squeeze could be to short-sellers' capital.
With shorts already ahead by $7.3 billion in cumulative gains, the trade has been profitable despite the stock remaining at high prices. That profitability could discourage some shorts from exiting, even if technical conditions begin to tighten. If SpaceX's share price accelerates past $280 before the unlock, shorts holding at current cost bases would face substantial additional losses.
