Short sellers are currently paying about 60 basis points to borrow SpaceX stock. While this rate is double the cost associated with stocks that have the most accessible borrow options, Sam Pierson, director of research at S3 Partners, noted that the figure reflects a broader supply of available shares rather than a market squeeze. This relative ease of access suggests that funds interested in betting against Elon Musk’s firm are not encountering the typical supply constraints that often plague newly listed or limited-float companies.

Investors eyeing a decline in the company's valuation must balance potential profit against significant risks. The stock maintains robust support from both retail and institutional buyers, and Musk has a well-documented history of aggressively targeting short sellers. Market volatility remains a factor as well; while shares climbed roughly 6% to $164.04 on Tuesday, they experienced intraday swings as low as $147.11, underscoring the precarious nature of maintaining a short position against the rockets-and-AI manufacturer.