Chamath Palihapitiya Draws Parallel Between SpaceX Short Sellers And Early Tesla Bears, Warning They Could 'Go Broke'

• SpaceX completed its initial public offering in mid-June 2026, pricing at $135 per share in what was the largest IPO in U.S. history.
• According to S3 Partners, short interest has climbed rapidly since the listing.
• Palihapitiya’s comment references the well-documented history of heavy short interest in Tesla during its early public years.

Venture capitalist and All-In podcast co-host Chamath Palihapitiya responded on Tuesday to reports of surging short interest in SpaceX (SPCX), comparing the situation to the early days of Tesla (TSLA) and suggesting that short sellers betting against the rocket and satellite company risk significant losses.

X account ZeroHedge posted on Tuesday, citing data from S3 Partners, that 95% of SpaceX shares available to borrow are currently out on loan, equating to roughly 34% short interest as a percentage of the public float.

“This happened in the very early days of tesla as well. they went broke,” Palihapitiya responded.

SpaceX CEO Elon Musk jumped in on the same discussion, posting: “I try to warn them, but they just double down…”

SPCX shares traded 9% higher at the time of writing, ahead of the company’s first earnings as a publicly held company.

SpaceX Short Interest Soars

SpaceX completed its initial public offering in mid-June 2026, pricing at $135 per share in what was the largest IPO in U.S. history. Shares initially surged, briefly trading above $225, before declining sharply amid broader market pressures and concerns over valuation, cash burn, and upcoming share supply. At the time of writing, the stock had fallen roughly 44% from its post-IPO peak and traded around $125.

Short interest has climbed rapidly since the listing. According to S3 Partners, the number of shares sold short rose from about 23 million in mid-June to 219.3 million by late July—representing roughly 34% of the limited free float.

Palihapitiya’s Thesis 

Palihapitiya’s comment references the well-documented history of heavy short interest in Tesla during its early public years. In the 2010s, Tesla frequently ranked among the most shorted stocks, with short interest at times exceeding 20–30% of the float. Prominent short sellers and funds bet against the electric-vehicle maker amid repeated questions about its ability to scale production, achieve profitability, and avoid liquidity crises.

Over time, however, Tesla’s share price rose dramatically—delivering multi-thousand-percent gains from its early post-IPO levels—resulting in substantial losses for many short positions. In 2020 alone, Tesla shorts incurred more than $40 billion in mark-to-market losses, according to S3 Partners data from that period, ranking it as one of the most unprofitable short trades in recent market history.

Palihapitiya’s remark frames the current SpaceX shorting as a potential repeat of that dynamic where long-term execution could ultimately force short covering at higher prices.

SpaceX is set to release its first public earnings numbers after the market closes on Tuesday. Investors will closely watch SpaceX’s first public earnings report for hard numbers, including research and development costs, Starlink growth metrics, Starship progress, and details on the company's AI ventures. According to data from Fiscal AI, SpaceX is expected to report second-quarter revenue of $6.8 billion and loss per share of $0.23.

How Did SPCX Retail Traders React?

On Stocktwits, retail sentiment around SPCX stock stayed within the 'bullish' territory over the past 24 hours, while message volume stayed at ‘normal’ levels.

A Stocktwits user reiterated optimism in SpaceX CEO Elon Musk and said, “I learned never to bet against Elon.”

Another user voiced optimism for the company announcing more contracts with the earnings report.

SPCX stock now trades nearly 7% below its IPO price.

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