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Palihapitiya warns SpaceX shorts could face Tesla-like pain

Venture capitalist warns SpaceX short sellers risk Tesla-like losses as short interest hits 34%

  • SpaceX (SPCX) faces short interest of roughly 34% of its public float, with 95% of available shares out on loan, according to S3 Partners.
  • Venture capitalist Chamath Palihapitiya compared the situation to early Tesla, warning that short sellers could face significant losses if the company executes long-term.
  • SpaceX CEO Elon Musk responded to the short-selling surge, posting: “I try to warn them, but they just double down…”
  • The company is set to report its first quarterly earnings as a public company after market close on Tuesday, with analysts expecting a $0.23 loss per share on $6.8 billion in revenue.

Venture capitalist Chamath Palihapitiya compared surging short interest in SpaceX (SPCX) to the early days of Tesla, warning that short sellers betting against the rocket and satellite company risk significant losses. The comment came as SpaceX prepared to report its first quarterly earnings as a publicly held company after market close on Tuesday.

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According to data from S3 Partners, short interest has climbed rapidly since the company’s IPO in mid-June, with 95% of shares available to borrow currently out on loan. That equates to roughly 34% short interest as a percentage of the public float, a level that has drawn comparisons to Tesla‘s early years when short interest frequently exceeded 20-30% of the float.

“This happened in the very early days of tesla as well. they went broke,” Palihapitiya responded on Tuesday to a post by ZeroHedge citing the S3 data. SpaceX CEO Elon Musk joined the discussion, posting: “I try to warn them, but they just double down…”

SPCX shares traded 9% higher ahead of the earnings release, though the stock remains roughly 44% below its post-IPO peak of $225. The company completed its initial public offering in June at $135 per share, making it the largest IPO in U.S. history.

Investors will closely watch SpaceX’s first public earnings for hard numbers, including research and development costs, Starlink growth metrics, and Starship progress. According to data from Fiscal AI, the company is expected to report second-quarter revenue of $6.8 billion and a loss per share of $0.23.

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On Stocktwits, retail sentiment around SPCX stock remained bullish over the past 24 hours. One user reiterated optimism in SpaceX CEO Elon Musk, saying: “I learned never to bet against Elon.”

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