SpaceX stock under pressure as short sellers increase bets

SpaceX shares have fallen below their IPO price for the first time as investors increase bearish bets against the aerospace company, according to data reported by CNBC.

Figures from S3 Partners show around 185 million shares are now sold short, representing about 29 percnt of SpaceX's publicly tradable shares and an estimated $25 billion in short positions.

“We are seeing continuous demand from short sellers building speculative positions since the IPO,” Matthew Unterman, head of research at S3, told CNBC.

The company’s shares have dropped around 20 percent during July and briefly traded below their $135 IPO price, falling to around $133 on Wednesday.

Investors are also closely watching upcoming lock-up periods, which could release millions of additional shares onto the market.

According to KeyBanc Capital Markets, the first major share release could take place around the company's second-quarter earnings, when roughly 11 percent of outstanding shares become eligible for sale. Additional share releases are expected later in the year.

The largest holding, owned by Elon Musk, accounts for around 42 percent of outstanding shares and remains locked up until June 2027.

Market attention is also focused on SpaceX's 13th Starship test flight, scheduled for Thursday, which analysts say could influence investor sentiment towards the stock.