Elon Musk predicts short sellers will lose as SpaceX shares experience significant post-IPO volatility
Elon Musk stated that investors betting against SpaceX have a very low probability of survival, despite a significant increase in short interest. Currently, approximately 32% of the company's publicly tradable shares are sold short, representing about $25 billion in bearish bets. This surge in short positions comes as the market weighs SpaceX's long-term prospects against its high valuation and the upcoming expiration of share lock-up restrictions. Following its initial public offering, SpaceX shares experienced extreme volatility, peaking at $201.80 before falling to $115.07. This 28.5% drop from the initial price erased $1 trillion from the company's peak market capitalization. While the Starlink satellite internet service remains profitable, the space launch and AI divisions currently operate at a significant loss. Analysts from Morgan Stanley suggest that a $100 share price would imply a zero value for the AI division. However, Musk remains confident in the company's ultimate value, asserting that SpaceX will be worth more than Earth if the company achieves its goals.