The company’s valuation, currently hovering near $2 trillion, has made it a primary target for investors betting on further price depreciation. According to Ortex Technologies, the cost to borrow shares remains relatively inexpensive at 1%, a significant decline from the 14% peak observed during the June 12 launch. This low barrier to entry for short sellers contrasts sharply with the 'Magnificent Seven' stocks, which typically see only 1% to 3% of their float sold short.

Despite the increased bearish activity, SpaceX’s limited float size creates a precarious environment for those betting against the stock. Peter Hillerberg, co-founder of Ortex, noted that with 83 million shares currently shorted against an average daily volume of 270 million, any sudden price rebound could trigger a classic short squeeze. Such a scenario would force short sellers to buy back shares, potentially accelerating a rally beyond what underlying fundamentals might otherwise dictate.