SpaceX shares drop 49 percent from peak ahead of first earnings report

SpaceX shares have fallen below their initial public offering price, giving short sellers an estimated $15.5 billion in unrealised gains, according to Reuters, citing data from Ortex Technologies.

The stock was priced at $135 per share when it debuted on 11 June, before climbing to an intraday high of $225.64 five days later.

By 22 July, the shares had fallen to $115.26, around 49 per cent below their peak and 15 percent below the IPO price.

According to Reuters, short interest has risen sharply since the listing. Ortex estimates that nearly 196 million shares, or about 31 per cent of the company's free float, are now being sold short.

Peter Hillerberg, co-founder of Ortex Technologies, told Reuters: "SpaceX has been a rollercoaster for the short sellers, and it has ended up firmly in their favor."

"Rather than take profits, the bears kept adding the whole way down."

CNBC, citing S3 Partners, also reported rising demand from short sellers.

Matthew Unterman, head of research at S3 Partners, told the broadcaster: "We are seeing continuous demand from short sellers building speculative positions since the IPO."

Investors are now watching SpaceX's first earnings report on 4 August, followed by the expiry of a key insider lock-up period two days later, events that analysts believe could trigger further volatility in the stock.