Elon Musk Dares Short Sellers as SpaceX Bets Skyrocket to 32% of Float Ahead of Key Catalysts

Last updated: July 22, 2026 7:37 am

1 week ago

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Short interest in Elon Musk’s SpaceX has surged to approximately 32% of its publicly tradable shares, representing $25 billion in bearish bets, according to S3 Partners. This significant increase comes as the company approaches its first public earnings report and lock-up expirations, prompting a defiant warning from Musk that short sellers betting against SpaceX will face severe consequences. Despite a recent dip, analysts are urging investors to buy the weakness ahead of these critical events.

The financial world is abuzz as bets against Elon Musk's aerospace venture, SpaceX, have dramatically increased, now constituting an estimated 32% of the company's publicly tradable shares. This surge in short interest, valued at approximately $25 billion, has drawn a sharp rebuke from Musk himself, who predicts a grim future for those betting against his ambitious company.

According to S3 Partners, about 206 million SpaceX shares are currently sold short. This figure marks a significant jump from 185 million shares (29% of the float) just a week prior, and an even more staggering increase from roughly 40 million shares (5% to 7% of the float) a month ago.

Samuel Boivin | Nurphoto | Getty Images

Matthew Unterman, head of research at S3, highlighted the ongoing trend: "We continue to see short sellers adding exposure ahead of several key upcoming catalysts, including the company's first earnings report as a public company and subsequent lock-up expirations."

Musk, never one to shy away from a public challenge, took to X (formerly Twitter) to issue a stern warning to these bearish investors. "The survival probability of firms who maintain a significant short position in SpaceX over time is very low," Musk declared. He reiterated his audacious vision, adding, "I said SpaceX will be worth more than Earth if we achieve our goals. Obviously true."

The survival probability of firms who maintain a significant short position in SpaceX over time is very low.

I said SpaceX will be worth more than Earth if we achieve our goals. Obviously true.
— Elon Musk (@elonmusk) July 22, 2026

SpaceX one month chart

The company confirmed that its inaugural quarterly earnings report as a public entity will be released after U.S. markets close on August 4. This event is highly anticipated, as it will offer investors their first comprehensive look into SpaceX's financial performance since its IPO, setting the stage for a critical showdown between bulls and bears.

Investors are currently weighing SpaceX's long-term potential against its current valuation and the impending expiration of lock-up restrictions, which could introduce more shares to the market. Proponents laud the company's dominance in launch services, the rapid expansion of its Starlink internet constellation, and its ambitious strides in artificial intelligence. Conversely, skeptics question whether the stock's current price fully accounts for its projected future growth.

SpaceX shares saw a 3% uptick on Tuesday, breaking a seven-session losing streak. This recovery followed Macquarie analysts reiterating their "outperform" rating and advising investors to capitalize on the recent price dip. The stock climbed to approximately $124, though it remains below its initial public offering price of $135 after a post-listing retreat.