SpaceX’s stock tumbled to a fresh low near $107, falling below its IPO price, and now the short interest in the shares is surging just days before the company’s inaugural quarterly earnings filing as a public company. On July 31, the short volume ratio climbed to its highest point in 10 days, reaching nearly 70 percent a clear signal that many traders are betting against a quick rebound.
The stock has lost roughly half its value since mid-June, sliding from a high above $225. This steep drop reflects skepticism about SpaceX’s eye-popping $1.77 trillion market cap at IPO, especially after the company disclosed a $2 billion loss in Q1 2026 on under $5 billion in sales. While Elon Musk forecasts explosive revenue growth that could reach $1 trillion by 2030, the pace and scale of these projections have left investors wary.
Adding to doubts is the massive $30 trillion total addressable market cited in SpaceX’s S-1 filing. Achieving the Street’s most bullish estimates would push the valuation to $10.5 trillion, roughly 30 percent of the entire US GDP numbers that make even seasoned analysts uneasy. Patrick Boyle, a professor and fund manager, has drawn parallels to the dot-com era where analysts often praised companies publicly while privately questioning their worth.
With SpaceX’s first earnings set for August 4, the market is bracing for confirmation that growth can justify its lofty valuation. Until then, the high short interest and stock price weakness suggest few expect a turnaround just yet.
This material is for informational purposes and does not constitute financial advice.
