SpaceX [Reuters=Yonhap News]

Short sellers betting against SpaceX are currently seeing paper profits of $15.5 billion (approximately 22.8 trillion won).

Reuters reported this on the 23rd (local time), citing data compiled by financial analytics firm Ortex Technologies.

SpaceX’s stock price peaked at $225.64 during intraday trading on the 16th of last month, its third day since going public, before entering a downward trend. The closing price that day was $118.25, significantly below its initial public offering (IPO) price of $135.

“There is absolutely no sign that short sellers are looking to take profits,” said Ortex co-founder Peter Hillerberg. “On the contrary, they are doubling down on their bets.”

According to Ortex data, 56% of SpaceX’s floating shares (approximately 360 million shares) are currently out on loan.

SpaceX CEO Elon Musk warned on social media platform X on the 17th that "the probability of survival for companies maintaining significant short positions against SpaceX over the long term is very low," but the bearish betting has not wavered.

On the 6th of next month, the lock-up period for 911.5 million insider-held shares will expire, potentially releasing up to $116 billion (approximately 171 trillion won) worth of shares into the market.

As additional lock-ups expire, the number of tradable shares is expected to surge from the current 639 million to 5.33 billion by early December, leading analysts to suggest there is still room for further short-selling activity.

While SpaceX has become a target for short sellers skeptical of its high valuation, Reuters noted that given the intense interest from individual and institutional investors, combined with Musk’s history of publicly battling short sellers, such bearish bets could be a risky choice.

Musk has clashed publicly with those shorting Tesla on several occasions.

In 2018, his "funding secured" tweet suggesting taking Tesla private caused billions of dollars in losses for short sellers. In 2020, following a surge in Tesla's stock price that caused massive losses for hedge funds, he famously sold "short" shorts—a pun on the financial term—adorned with mocking slogans.