Elon Musk warns SpaceX short sellers: "survival probability is very low"
Elon Musk warned on X that firms holding significant short positions in SpaceX have a "very low" survival probability — a month after SpaceX's record-breaking IPO, with the stock now trading below its offer price and short sellers sitting on sizable paper profits, the remark echoes Musk's long pattern of directly confronting bears, as he has often done with Tesla.
SpaceX went public in June in the largest IPO in history, but a little over a month later its stock has fallen below the offer price, drawing attention from short sellers.
Replying to a user on X, Musk wrote: "The survival probability of firms who maintain a significant short position in SpaceX over time is very low."
About 30% of the roughly 640 million publicly tradable shares have been borrowed for short bets, making SpaceX one of Wall Street's most heavily shorted stocks barely a month after its debut. Short sellers are estimated to be sitting on roughly $4 billion in paper profits over that stretch.
For Tesla shareholders, the more relevant angle than SpaceX's share price itself is that a potential Tesla-SpaceX merger is already a variable the market is discussing — how SpaceX's valuation evolves could feed into Tesla's own valuation logic if merger talks ever advance.
Summaries are prepared by the Tesla Briefing editorial team and may not capture every nuance of the original reporting. You are solely responsible for your own investment decisions.