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Business

Short-Sellers Bet Big Against SpaceX as Executives Defend AI Spending

Wall Street is taking opposite sides on SpaceX after its stock market debut, with short-sellers making a massive bet against the company while executives insist their heavy AI investments are paying off quickly. In their first address to investors since the initial public offering, SpaceX leaders tried to reassure the market that the spending on artificial intelligence would deliver returns within a year. But the bearish camp is unconvinced. Bob Sloan, founder and managing partner of S3 Partners, calls SpaceX one of the frothiest trades the market has ever seen. He says short-sellers are already billions of dollars ahead on their positions. Sloan also notes the potential for a short squeeze, which could force those betting against the stock to buy it back at higher prices. He adds that the broader question is whether the market's speculative excess is finally fading. The clash between company promises and heavy short interest makes SpaceX a key test of investor sentiment.

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