QUICK SPARK: SpaceX Stock Attracts Short Sellers on the Way Down

Nearly 185 million shares, or about 29% of the public float, are now sold short, representing $25 billion in wagers, according to CNBC. This marks a significant increase from just three weeks ago when short interest was between 5% and 7%. The surge in short selling comes as SPCX’s stock struggles, having dropped below its $135 IPO price on Wednesday.

The increase in short selling activity has been dramatic, with short interest ballooning from an estimated 40 million shares to 185 million shares. Matthew Unterman, head of research at S3 Partners, noted the continuous demand from short sellers building speculative positions since the IPO. CNBC reported this trend has contributed to the stock’s downward momentum.