SpaceX Short Interest Falls to 11% From 34% Peak: Are Bears Capitulating?

Short sellers are abandoning their bets against SpaceX (SPCX) just as the stock stages a sharp rebound.

Short interest in the company fell to roughly 11% of its tradable float this week. That is down from a peak of 34% just seven days earlier, according to S3 Partners.

SpaceX Heading Back to Opening Price

The unwind comes as SPCX shares climbed about 41% off their Aug. 3 low. That SpaceX stock rebound lifted the stock back above its $135 initial public offering (IPO) price and towards its open opening of $150. Short interest had already overtaken Tesla's ahead of last week's earnings report and a share lockup expiration.

Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, said bearish traders have little ammunition left.

"Shorts that wanted to short are out of bullets."

- Ihor Dusaniwsky, CNBC

SpaceX can Determine the Market Direction

Bob Sloan, founder of S3 Partners, went further on CNBC. He argued SpaceX's size and its role in "Delta 1" trading strategies make its positioning ripple through the market.

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