SpaceX Shares Rise Even as Company Insiders Get a Chance to Sell for the First Time
Bearish bets reached $23.6 billion as investors brace for 206 million shares shorted and a first insider lockup release this week.
- Short sellers now hold an estimated 206 million SpaceX shares ahead of Tuesday's quarterly results and Thursday's first insider lockup expiration, following a stunning reversal that saw the stock lose over 50% since its June debut.
- Notional short interest in SpaceX has climbed to about $23.6 billion, overtaking Tesla's roughly $22 billion, a development notable because the electric-vehicle maker has long been one of Wall Street's favorite targets.
- The first lockup expiration this week will make roughly 20% to 30% of previously restricted insider shares eligible for sale, according to Bernstein, with staggered releases of about 7% of total shares following through October.
- "We have found many investors unwilling to buy SpaceX shares in the interim, based on fundamentals, given the lockup overhang that will exist at least into December," Bernstein analysts said; unlike Tesla, SpaceX remains excluded from major equity indexes.
- By December, those events could increase the public float to as much as 40% of shares outstanding, as the company has lost more than $500 billion in market value since its first trade in June.
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Associated Press News
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