Elon Musk predicts that investors betting against SpaceX will likely lose as the company prepares to release its first public earnings report.
Elon Musk warned that investors maintaining significant short positions in SpaceX have a very low probability of survival as the company prepares for its first public earnings report on Aug. 4. Despite a recent slide in stock price below its $135 initial public offering price, Musk expressed confidence in the company's long-term goals, stating that SpaceX will be worth more than Earth if those objectives are met. Currently, short sellers have increased their wagers to approximately 32% of the company's publicly tradable shares, representing about $25 billion in bearish bets. While the stock has faced a recent losing streak and a pullback from its post-debut high, analysts suggest the decline is largely due to the cooling of initial hype rather than a breakdown in fundamentals. SpaceX continues to expand its Starlink satellite-internet service, which now serves over 10 million customers. While the company maintains a high valuation of $1.64 trillion, the recent price weakness offers a potential opportunity for contrarian investors to enter a high-conviction, high-volatility position.