Space Exploration Technologies (SPCX, Financials) has had a rough few days on Wall Street, and short sellers are benefiting.
The stock has fallen for four straight sessions, dropping about 11% over that stretch. At one point, shares slipped to $132.15, below the company's $135 IPO price, before recovering slightly.
That pullback has produced an estimated $3.8 billion in mark-to-market gains for traders betting against the stock, according to S3 Partners.
Short interest has climbed to about 181 million shares. That works out to roughly 28% of the shares available for public trading, which is a sizable bet against a newly listed company.
The recent weakness may reflect a mix of profit-taking and caution ahead of several important events.
SpaceX is preparing for its 13th Starship test flight, and the company is also expected to report earnings in early August.
Those two events could shape the next move in the stock. A successful launch may restore some confidence, while the earnings report should give investors a better look at revenue, costs and cash needs.