SpaceX falls below offering price after listing as Musk warns on large shorts

Shares slipped below their offering price within weeks of listing, prompting more bearish bets; Elon Musk said firms holding large long-term SpaceX short positions face very low survival odds.

Summary

SpaceX shares have fallen below their offering price for the first time only weeks after listing, reversing earlier enthusiasm tied to Starlink, its rocket business, broader space commercialization and perceived AI potential, according to the Financial Times. The decline has encouraged more investors to bet on further weakness through short selling. In a July 19 post on X, Elon Musk said companies that maintain large long-term short positions in SpaceX are very unlikely to survive, responding to a claim that the shares had fallen 30% from their peak after an IPO and that short sellers had made about $8.7 billion. SpaceX had not commented on the market moves.

Terms & Concepts
  • short selling: Borrowing shares to profit from a price decline, while facing potentially large losses if the price rises.
  • offering price: The initial price set for shares sold to investors.
  • Starlink: SpaceX's satellite internet business.