Space Exploration Technologies Corp (NASDAQ:SPCX) shares are falling Thursday, giving back part of this week’s rally after a wave of short covering fueled the move higher. Here’s what you should know.
SpaceX stock is feeling bearish pressure. Why are SPCX shares down?
Short Interest in SpaceX Collapses After August Rally
Short interest in SpaceX stock tumbled to about 11% of the company’s publicly traded shares Wednesday, down sharply from a peak of 34% just a week earlier, according to S3 Partners data cited by CNBC.
That decline reflects two forces working together: bearish investors have been closing out positions, and the stock’s tradable float expanded significantly after its first major lockup expiration. Investors covering short positions must buy back shares to exit, which can quickly add fuel to a rally. The decline in short interest followed a sharp move from the stock’s Aug. 3 low.
