Space Exploration Technologies Corp. (NASDAQ:SPCX) reported stronger-than-expected first quarterly financial results as a public company, prompting CEO Elon Musk to mock short sellers after bearish bets against the stock climbed to about one-third of its public float ahead of the earnings.
Musk Says Bears ‘Double Down’
Ahead of the earnings report on Tuesday, S3 Partners estimated that about 95% of SpaceX shares available to borrow had been lent out, with short interest reaching roughly 219.3 million shares, or about 34% of the public float, representing bearish bets worth approximately $24.6 billion.
“I try to warn them, but they just double down,” Musk said in response to a post by Zerohedge that highlighted S3’s data.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
Earnings Trigger Sharp ETF Reversal
The Defiance Daily Target 2X Short SPCX ETF (BATS:SPCQ), Leverage Shares 2X Short SPCX Daily ETF (BATS:SSPC) and GraniteShares 2x Short SpaceX Daily ETF (BATS:SNK) had fallen more than 20% ahead of SpaceX’s earnings.
Following the results, SPCQ climbed 17.93% in extended trading. The fund has $22.17 million in assets under management and charges an expense ratio of 1.31%.
SSPC gained 17.69% after hours. The ETF manages $209.07 million in assets and carries an expense ratio of 0.75%.
Short Sellers Face Two Major Catalysts
According to S3 Partners, the anticipated increase in tradable shares following Thursday’s lockup expiration has been the primary driver behind the recent rise in short interest, rather than earnings expectations alone.
Roughly 911.5 million insider-held shares are scheduled to become eligible for trading, more than doubling SpaceX’s public float.
Earnings Top Wall Street Estimates
SpaceX reported second-quarter revenue of $7.81 billion, up 92% year over year and above analysts’ estimates of $6.93 billion, according to Benzinga Pro.
The company reported a loss of 9 cents per share, beating estimates for a 24-cent loss.
It expects to reach a $100 billion annualized revenue run rate by the end of 2026 and projects $1 trillion in annual revenue by 2030, a year earlier than previously expected, with a “non-zero chance” of hitting that milestone in 2029.
Price Action: SPCX closed 9.43% higher on Tuesday at $125.33 and slumped 7.46% to $115.98 in extended trading.
Benzinga edge rankings indicate SPCX has a negative price trend across the short, medium, and the long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Samuel Boivin / Shutterstock.com
