SpaceX faces a massive short position of 206 million shares (32% of tradable float) worth $25 billion. CEO Elon Musk claims short sellers have "very low" survival probability, but the stock has fallen 45% from its post-IPO peak to $123.46. While a potential short squeeze could occur before the company's first earnings report on Aug. 4, expanding lock-up expirations will increase share supply, potentially easing short pressure. The stock trades at 80+ times sales despite impressive 33% revenue growth, leaving valuation concerns unresolved.
Axe note: SpaceX’s heavy short interest and lofty valuation signal caution, with a potential short squeeze adding volatility ahead of earnings.