AI Strategy Overlaps Short Squeeze Effect, SpaceX Stock Price Surges 40% in 10 Days

August 13th, SpaceX's stock price surged 9.7% on Wednesday, closing at around $146.15. With this increase, the company's stock price has risen by about 40% from the low point on August 3rd. Analysis points out that factors driving the stock price rebound include Musk emphasizing the AI strategy, the company's release of the latest Grok 4.6 model, and the exit of a significant amount of short positions in previous trades.

According to S3 Partners data, as of Wednesday, SpaceX's short interest as a percentage of the company's public float has dropped to around 11%, significantly lower than the peak of 34% last week. Ihor Dusaniwsky, Managing Director of Predictive Analytics at S3 Partners, stated: "Funds looking to short have run out of ammunition. The amount of capital that can be deployed for a trade is ultimately limited." As the stock price rebounds, some shorts have begun to cover their positions. Short sellers need to buy back the shares they borrowed and sold earlier to close out their positions, and this type of buying pressure may further amplify the uptrend.

It is important to note that, as per the company's prospectus, approximately 319 million shares are expected to be tradable on August 20th, with close to 700 million shares potentially unlocking in September and October. At that time, SPCX may experience another round of stock price volatility.