SpaceX’s short-selling ratio rises to 29% of outstanding shares, with short positions totaling $25 billion.

BlockBeats, July 16: As SpaceX’s stock price fell back to near its IPO offer price, short positions against the company were rapidly increasing. S3 Partners data shows that at present, about 185 million shares of SpaceX stock are being sold short, accounting for about 29% of publicly floated shares, corresponding to a short position of about $25 billion.

Three weeks ago, the estimated number of SpaceX shares sold short was only 40 million shares, accounting for about 5% to 7% of float. Since July, the stock has cumulatively fallen by about 20%, and on Wednesday it briefly dropped below the IPO offer price of $135 for the first time.

KeyBanc Capital Markets said that at the time of listing, shares available to the public accounted for only about 5% of the total share count of about 13 billion. The first large tranches of shares subject to lock-up could be released around the time of the second-quarter earnings release; then about 11% of the total share count may become eligible for sale. About 70 days after the IPO, more batches of shares, each comprising about 4% of the total share count, will also be gradually unlocked.

About 42% of SpaceX shares held by Musk will remain locked until June 2027. The company’s 13th “Starship” test flight is scheduled for Thursday, which may affect market sentiment toward the stock.