Amidst the AI-induced boom and fears of a bubble, short-sellers identified an opportunity to bet against the rally. However, betting against Elon Musk-led commercial space flight giant Space Exploration Technologies Corp. (NASDAQ:SPCX) has turned out to be particularly profitable.
Shorting SpaceX Cleared More Than $7 Billion
According to a report by the New York Times on Tuesday, market research firm S3 Partners’ Ihor Dusaniwsky, who is the firm’s Head of Predictive Analytics, said that short-sellers cleared approximately $7.3 billion since SpaceX’s IPO in June.
This, in contrast with other AI shorts that have resulted in losses amounting to $200 billion in 2026, the article said. The report also said that shorts against SpaceX crossed $26 billion. The firm also says that Musk-led Tesla Inc. (NASDAQ:TSLA) remains a favorite among short-sellers, but SpaceX has become the second most profitable company to short this year.
“We’ve seen continued SPCX short selling since its inception,” Dusaniwsky said in the report. SpaceX is set to report its second-quarter 2026 earnings on August 4, in what will be its first-ever public earnings call. Following its earnings, SpaceX will also allow some insiders to begin selling stock as the lock-up period stipulated in the IPO ends.
Ron Baron Bullish on SpaceX
The news comes as Baron Capital‘s investor Ron Baron backed SpaceX despite its decline, saying the firm’s stake in the company could see a 30-fold increase in the future. The investor also called the commercial space flight giant an “incredible business.”
Meanwhile, Musk had earlier issued a warning to SpaceX shorts, saying that “the survival probability of firms who maintain a significant short position in SpaceX” was very low, backing the company, which has sparked valuation concerns among investors like Gary Black of The Future Fund LLC.
However, investor Ross Gerber of Gerber Kawasaki backed SpaceX, warning investors not to bet against the company and saying that the company’s goals made the recent stock decline irrelevant.
Benzinga Edge Rankings show SpaceX fails to provide a favorable price trend in the Short, Medium and Long term.
Price Action: SpaceX shares were down 2.04% to $114.04 during overnight trading on Tuesday.
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