SpaceX Holds Above $2 Trillion as Short Sellers Lose $760 Million Betting Against Musk

Elon Musk’s SpaceX continues to command a market valuation exceeding $2 trillion, even as a growing number of investors bet against the aerospace giant following its blockbuster public debut with those bearish wagers already resulting in an estimated $760 million in paper losses.

According to data from analytics firm Ortex, short interest in SpaceX has surged to 196 million shares, representing approximately 31% of the company’s publicly tradable shares, an unusually high level for a company that has been listed for less than a month.

The sharp increase in bearish positions underscores lingering skepticism over SpaceX’s lofty valuation, despite the company’s rapid ascent following its historic initial public offering in June.

Short sellers initially benefited after the stock retreated from its post-listing highs, at one point sitting on roughly $2.5 billion in unrealised gains.

However, a subsequent rebound in the share price erased those profits and pushed aggregate losses to about $760 million, according to Ortex estimates.

SpaceX’s valuation remains among the highest in global equity markets, reflecting investor optimism over its leadership in commercial space launches, satellite broadband services through Starlink and expanding artificial intelligence infrastructure initiatives.

Despite concerns that the company’s valuation has outpaced traditional financial metrics, demand from both institutional and retail investors has remained resilient, helping SpaceX maintain a market capitalisation above $2 trillion.

Market analysts note that the unusually large short position could increase volatility in the stock. If shares continue to appreciate, short sellers may be forced to buy back borrowed shares to limit losses, a phenomenon known as a short squeeze, which can further accelerate price gains.

Ortex estimates that every $1 movement in SpaceX’s share price changes the combined profit or loss of short sellers by roughly $200 million.

While questions remain over whether SpaceX’s valuation fully reflects its current earnings potential, investors continue to price in substantial long-term growth driven by Starlink’s global expansion, reusable rocket technology, government and commercial launch contracts, and the company’s increasing focus on artificial intelligence.

The stock is also expected to receive additional support from passive investment funds when it joins the Nasdaq-100 next week, a move analysts estimate could attract approximately $4.3 billion in index-related buying.