Short interest in SpaceX fell by more than 20% points since its peak as the stock continues to rebound.
CNBC detailed that the figure now stands at 11% of the company's publicly traded shares, down from 34% last week, according to figures from S3 Partners cited by CNBC.
The outlet detailed that the decline is a combination of bearish investors closing positions and the expansion of the stock's tradable float after the first large lockup expiration.
The stock is soaring on Wednesday, jumping by almost 10% at 2:12 p.m. ET. It stood above $146, $11 above the IPO price.
The company's shares are also climbing after a tame inflation report and the disclosure from Norway's sovereign fund about a stake in the company.
The country's fund, worth about $2.3 trillion, made the disclosure after reporting a record half-year profit of almost $185 billion.
Norges Bank Investment Management (NBIM) currently invests in over 7,000 companies across 50 countries, according to CNBC.
"The result is driven by good returns in the equity market, particularly from Asian technology stocks," said NBIM CEO Nicolai Tangen.
The fund's portfolio is more than two-third equities, including Nvidia, Apple and Microsoft. It also disclosed a 0.05% stake in SpaceX, valued at more than $1.2 billion. It also holds a 1% stake in Tesla.
The company led by Elon Musk had already soared more than 15% on Friday after overcoming two major hurdles that many investors expected would send the stock tumbling: the company's first quarterly earnings report as a public company and the largest lock-up expiration since its June initial public offering.
Last week, however, began on an uncertain note. On Tuesday, SpaceX reported second quarter results that exceeded Wall Street expectations, with revenue and adjusted EBITDA coming in well above analyst forecasts. However, the stronger-than-expected financial performance failed to reassure investors worried about the company's rapidly rising spending on artificial intelligence infrastructure.
On Thursday, approximately 911.5 million previously restricted shares became eligible for trading in the company's first and largest lock-up expiration. The newly unlocked shares represented roughly 43% more stock than the 638.9 million shares originally offered in the IPO, more than doubling SpaceX's public float.
The freely tradable portion of outstanding shares increased from 4.9% to 11.8%, creating concerns that early investors and insiders would rush to sell, flooding the market with additional supply and pushing prices even lower. However, the opposite happened and stocks have continued climbing since.
