SpaceX shares tumble to $118 as short sellers gain $8.7B
SpaceX shares just dropped to a record low of $118 on the secondary market, letting short sellers walk away with big profits, about $8.7 billion in profit as of last week.
The number of shorted shares has soared from 40 million to 206 million in just one month, making up nearly one-third of all shares you can actually trade.
Analysts warn SpaceX shares could fall
Analysts think the shares could fall even more, especially with an earnings report from SpaceX and some key lockup periods ending soon.
Even though Elon Musk called out short sellers on Twitter, saying they have a very low survival probability, investors are still worried about the company's steep losses despite its massive $1.6 trillion valuation.
Big moments like the upcoming earnings report and another Starship rocket test might sway how people feel about SpaceX going forward.