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SpaceX shares rebound as short sellers retreat following initial lockup expiration

SpaceX shares experienced a sharp rebound on Wednesday, jumping 11% to approximately $148. The rally follows a period of volatility where short interest fell from a peak of 34% to about 11% of the company's publicly traded shares. This decline in bearish sentiment is attributed to a combination of a larger tradable float following the first major lockup expiration and short sellers buying back shares to exit their positions. The company's stock initially struggled after its first earnings report revealed capital expenditures exceeding twice its revenue. However, the recent recovery is bolstered by positive outlooks from analysts. UBS reiterated a 'Buy' rating with a $210 price target, citing demand for AI tokens and Starlink expansion. Additionally, the global space economy is projected to reach $1.8 trillion by 2035, a report from the Goldman Sachs Global Institute identifies launch infrastructure as a key sector chokepoint. Investors should remain mindful of upcoming share unlocks in August, September, and October, which may introduce further volatility as more shares become available for trading.

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