Hasn't the stock already collapsed below IPO price? Does that mean the IPO was simply overpriced? Do these people expect the stock to go down even further? Shorting is way more risky I don't see why this would be the case unless my questions turned out to be predictions.
Every single shorted stock, was purchased by someone else who is taking the long side of the trade. So there's as many people betting the stock will go up. This says more about volatility and volume of trading, than anything else.
Over two weeks ago, calls outnumbered puts 5 to 1 according to an article by SeekingAlpha. I am wondering if this flip is too reactive. I can't discount the "Musk premium" that keeps people enamored with his securities and cause unpredictability.
Right now, SpaceX has provided 639 million shares to trade. People want more.
In a month, there will be 1,583 million shares to trade.
But right now, there are actually 820 million shares to trade: the 639 million provided by SpaceX, plus another 181 million provided by short sellers.
I'm not crazy enough to try to short it, but getting out of the money put options a year or two out seems like a good idea.
If you're going to short it, you better have a buffer big enough to cover it going up to $500 for a moment somewhere before Elon is free to sell next summer. Someone will do a short squeeze, and slowly sell into it.
I feel like market cap valuations should have some way to factor in the supply/demand constraints. I know that float exists as a concept, but I think it's insane to call SpaceX a Trillion dollar company, when if it started selling significant stock tomorrow, it would probably be selling pennies on the dollar.
Space is old news, it had its moment of euphoria but then AI came around and made space bulls look like fools, because sooner or later quality of life matters and as overvalued as AI could be, it's 1000x more real than space for QOL
18 comments
[ 4.1 ms ] story [ 56.1 ms ] thread[1] ie are happy to be synthetically short the stock and see a demand for the calls
So guessing non investors in SpaceX are shorting for this event in expectation of a drop
https://www.bloomberg.com/opinion/newsletters/2026-07-16/sho...
every owner is potentially double selling pressure
while liquidity itself is variable
SpaceX stock erases all its gains and slides below IPO price in intraday trading
https://news.ycombinator.com/item?id=48933344
SpaceX bond worth 10% less than issue price – heading for junk bond status
https://news.ycombinator.com/item?id=48920181
If you're going to short it, you better have a buffer big enough to cover it going up to $500 for a moment somewhere before Elon is free to sell next summer. Someone will do a short squeeze, and slowly sell into it.