Elon Musk-led SpaceX Shares Face Sell-Off After IPO Highs, Despite Record Short Interest
Shares of Elon Musk-led SpaceX have pulled back significantly after its record-breaking initial public offering, attracting intense scrutiny from investors. The stock, which once traded as high as $225.64, has fallen about 10% over the past five trading sessions, reaching $135.27 and touching below its debut price. The volatility has spurred record short interest, which currently stands at 28% of the company's tradable float. Analysts point to profit-taking and the company's lofty valuation—which remains near 49 times expected revenue—as primary concerns. Furthermore, the pending expiration of insider lockup restrictions could increase selling pressure on the market. While some analysts maintain a positive outlook based on long-term prospects, others suggest caution. Some bearish voices predict continued declines based on valuation metrics. Investors are now awaiting key catalysts, including an anticipated Starship test flight and the release of second-quarter earnings, as they weigh the risks against the potential for future growth.