Shares of SpaceX (SPCX) fell below their initial public offering (IPO) price of $135 this week. The stock peaked above $200 in the weeks following its record debut on the Nasdaq. Elon Musk rejected the pushback and predicted that the company would eventually outweigh the value of the land itself.
The stock was priced at $135 a share in June, raising $75 billion in the largest initial public offering ever. It has now lost nearly a third of its value from that peak. Short interest rose as the price fell.
SpaceX’s bold claim faces bearish stock
Musk’s predictions followed those of SpaceX Stock crash Who spent billions of his wealth this month. Musk responded directly to businessman Peter Diamandis X.
Diamandis argued that the total material wealth owned on Earth amounts to about $600 trillion. Space, in his view, contains almost infinite amounts of the same resources.
Musk’s calculations are based on that comparison, although it hinges on SpaceX reaching goals he never set. But the claim is not new. Musk has rolled out a similar SpaceX vehicle exceeds the value of the land Earlier this month, long before the stock tested its IPO floor.
Short selling angers Musk
Bearish bets against SpaceX rose sharply as the stock fell. Short interest reportedly reached about 185 million shares, or 29% of tradable shares.
This number reached about 40 million shares just three weeks ago. It represents nearly $25 billion in bearish bets. Short sellers already have an estimated $8.7 billion in paper profits.
The rapid buildup came after SpaceX Historical underwritingwhich also sparked a surge in tokens associated with Musk, including Dogecoin. One widely shared post mocked the pedigree of Ivy League short sellers. Musk then issued a warning of his own on X.
He provided no evidence for this claim, and the stock continued to decline regardless.
What comes next for SpaceX?
The stock is now trading near the recently reported level Falling wedge pattern. This pattern indicates a possible recovery towards $158. Investors will be watching, too August post opens. This date allows insiders to sell shares for the first time since the IPO, adding potential new supply.
SpaceX also canceled a Starship test flight this week. Automated safety systems stopped the countdown at T-minus zero after several Raptor engines failed to ignite. Two engines need to be replaced, and the next attempt will likely take place early the following week, Musk said.
Musk has separately argued that scarcity of goods and services will eventually disappear. It reflects a relevant part of his broader worldview on abundance.
However, this view remains untested compared to SpaceX’s near-term performance. Meanwhile, short sellers appear to be willing to bet on the stock before the stock’s open date arrives.
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