Kuaikeji, July 22 - According to media reports, Elon Musk recently spoke out on social platform X against the continuously rising short positions, predicting that short sellers will ultimately incur losses.

He wrote, 'Institutions holding large-scale long-term short positions in SpaceX have an extremely low probability of survival. I've said before that if we successfully achieve our goals, SpaceX's value will exceed that of the entire Earth—this is beyond doubt.'

This statement comes amid fluctuations in SpaceX's stock price after its public listing. Five weeks after what was dubbed the largest IPO in history, SpaceX's stock price has fallen approximately 30% from its peak market value.

Previously, the company's market value briefly surpassed $2.6 trillion, exceeding Microsoft and Amazon for a short period. However, the subsequent stock price correction allowed short sellers to gain approximately $8.7 billion in paper profits.

As several major catalytic events approach, short sellers continue to increase their positions, with short positions now accounting for about 32% of SpaceX's tradable shares.

Market data firm S3 Partners estimates that current short positions in SpaceX stand at approximately 206 million shares, representing about 32% of the company's tradable shares, with a notional short position size of $25 billion.

Last week, short positions were only 185 million shares, accounting for 29% of tradable shares; a month ago, short positions were estimated at just 40 million shares, representing 5%-7% of tradable shares, indicating a significant increase in short selling.

SpaceX confirmed on Tuesday that it will release its first quarterly financial report after the U.S. stock market closes on August 4. This report will provide investors with a complete understanding of its post-IPO operating performance and will serve as a new test for bullish and bearish funds.

Furthermore, Musk's remarks echo a bullish analysis report on SpaceX, which suggests that as Starship continues to reduce launch costs, it will foster a space economy worth trillions of dollars in the future.

The report projects that projects such as orbital solar power generation, asteroid mining, orbital data centers, and Mars terraforming could create over $100 trillion in new market value in the future.

Under this vision, SpaceX would become the infrastructure provider for the entire space economy, akin to AWS in the cloud computing sector. Through rocket launches, manned transportation, and space data transmission services, it would occupy (hold) a near-monopolistic market position and achieve sustained revenue growth.

In fact, this is not the first time Musk has publicly criticized short sellers. During Tesla's development, Musk has repeatedly stated that long-term short sellers of Tesla will ultimately suffer significant losses.

In July 2024, he said that once Tesla achieves full self-driving capability and mass-produces the Optimus humanoid robot, anyone still holding short positions in Tesla will be completely wiped out, even including Bill Gates.

In 2018, Musk also mocked short sellers, stating that they were only about three weeks away from their short positions being liquidated. Surprisingly, Tesla's stock price subsequently experienced a significant rally.

Musk has also publicly stated that short selling undermines value and once believed that short selling should be banned, as he sees it as essentially betting against innovation and technological progress.