Overview
Elon Musk issued a stark warning to short sellers on X, stating, "I try to warn them, but they just double down," as SpaceX (NASDAQ: SPCX) approaches its first quarterly earnings release as a public company. The earnings are scheduled for the night of August 4, 2026, after the market close, and the announcement is expected to trigger heightened volatility.
Short‑Interest Metrics
Data from S3 Partners indicates that short interest now represents approximately 34 % of SpaceX’s float, a level considered extreme given that anything above 10 % is typically high. Moreover, 95 % of the available supply of shares has been loaned out, meaning the market has nearly exhausted borrowable shares. This scarcity has driven borrowing costs to skyrocket, as short sellers pay a substantial premium to maintain their positions.
Potential Squeeze Dynamics
If SpaceX reports positive earnings, the constrained supply of shares could force short sellers to scramble for shares to cover, potentially propelling the stock sharply upward. The article notes that the ticker showed a +7.67 % move (SPCX+7.67 %) amid the growing short‑sell pressure.
Underlying Business Context
SpaceX has generated an estimated $19 billion in revenue over the trailing twelve months, yet its market capitalization is roughly $1.6 trillion, a valuation that leaves little margin for error in the eyes of bearish investors. Analysts cite ongoing, massive investments in Starship development and launch infrastructure as factors that may depress short‑term profitability.
Lock‑up Considerations
Lock‑up restrictions on insider shares are expected to begin expiring shortly after the earnings release, which could introduce a significant influx of insider stock into the market, further influencing supply dynamics.
Historical Perspective
Musk’s warning echoes his earlier battles with short sellers during Tesla’s early years, where he successfully executed short squeezes that dramatically boosted the stock price.
Publication Details
The article, authored by Louis Juricic, was published on 04‑08‑2026 at 11:42 pm and updated on 05‑08‑2026 at 12:36 am. It appears on Investing.com and carries a Reuters copyright.