$3.9 Billion in Short Profits: SpaceX Extends Four-Day Slide Ahead of Starship Test and Earnings

SpaceX shares extended their decline for a fourth consecutive session, with the stock falling back toward its IPO price as bearish bets continued to increase.

According to S3 Partners, short sellers are now sitting on nearly $3.9 billion in paper profits, highlighting growing pessimism ahead of several major company events.

Current data shows that approximately 181 million shares have been sold short, representing about 28% of the company's free float—a relatively high level for a newly listed stock.

Analysts say recent price weakness and the approaching lock-up expiry have encouraged more investors to add short positions.

Since reaching its post-listing high in mid-June, SpaceX shares have fallen by roughly one-third, erasing an estimated $860 billion in market value.

The stock briefly dropped to $132.15 during Wednesday's session before recovering slightly to trade near $135, close to its IPO price.

Investors are now watching two major catalysts.

The first is Starship's 13th test flight, which could take place as early as Thursday. Any unexpected outcome may trigger a sharp reaction in the stock.

The second is the company's first quarterly earnings report since listing.

At the same time, the expiration of the post-IPO lock-up period will allow millions of previously restricted shares to enter the market, potentially increasing selling pressure and volatility.

With heavy short positioning, a high-profile rocket launch, upcoming earnings, and a large share unlock all approaching, SpaceX is likely to remain one of the market's most closely watched stocks in the days ahead.