SpaceX (SPCX) shares slipped below their $135 initial public offering (IPO) price this week. The stock had peaked above $200 in the weeks following its record Nasdaq debut. Elon Musk dismissed the retreat and predicted the company will eventually outvalue Earth itself.

The stock was priced at $135 a share in June, raising $75 billion in the largest IPO on record. It has now lost roughly a third of its value from that peak. Short interest surged as the price fell.

SpaceX’s Bold Claim Meets a Falling Stock

Musk’s forecast followed a SpaceX stock crash that wiped billions from his fortune this month. Musk responded directly to entrepreneur Peter Diamandis on X.

Diamandis argued that all owned material wealth on Earth totals about $600 trillion. Space, in his view, holds nearly infinite quantities of the same resources.

Musk’s math rests on that comparison, though it hinges on SpaceX reaching goals he never specified. The claim, however, is not new. Musk floated a similar SpaceX outvalue Earth argument earlier this month, well before the stock tested its IPO floor.

Short Sellers Draw Musk’s Ire

Bearish bets against SpaceX climbed sharply as the stock fell. Short interest reportedly reached about 185 million shares, or 29% of the tradable float.

That figure stood at roughly 40 million shares just three weeks earlier. It represents close to $25 billion in bearish wagers. Short sellers already hold an estimated $8.7 billion in paper profits.

The rapid buildup followed SpaceX’s historic IPO, which also sparked a rally in tokens tied to Musk, including Dogecoin. One widely shared post mocked the Ivy League pedigrees of short sellers. Musk then issued a warning of his own on X.

He offered no evidence for that claim, and the stock kept sliding regardless.

What Comes Next for SpaceX

The stock now trades near a level flagged in a recent falling wedge pattern. That pattern points to a possible rebound toward $158. Investors will also watch August share unlocks. That date lets insiders sell shares for the first time since the IPO, adding potential fresh supply.

SpaceX also scrubbed a Starship test flight this week. Automated safety systems halted the countdown at T-minus zero after several Raptor engines failed to ignite. Musk said two engines need replacement, with the next attempt likely early the following week.

Musk has separately argued that the scarcity of goods and services will eventually disappear. It reflects a related piece of his broader worldview on abundance.

That vision, though, remains untested against SpaceX’s near-term performance. Short sellers, meanwhile, appear willing to bet against the stock before the unlock date arrives.

Source: BeInCrypto