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SpaceX designs, manufactures and launches advanced rockets and spacecraft.
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SpaceX is experiencing one of the biggest short squeezes and traders are losing millions and the craziest part is Elon Musk planned this. Let me explain. When SpaceX first IPO'd, the stock went up 67% in just four days to reach $225 a share. It was only downhill from there. Because when the company went public, only 5% of their shares were tradable and the other 95% were locked up. This initially caused the stock to soar because there weren't enough shares to go around, but it's also the reason it started crashing. You see on August 6th, over 911 million shares owned by early investors and employees were unlocked and able to sell. Everyone thought that the stock would short SpaceX. The stock proceeded to drop over 53% to just $104 a share. But then Elon intervened. He said that the stock was undervalued and made two announcements that would destroy anyone betting against him. First, Elon announced the "Terrafab" factory, the largest factory in the world, over 100 million square feet, producing AI chips to increase global capacity by over 5,000%. The stock pumped after this announcement. It got even better. Just three days later, Elon would announce the launch of Starlink Mobile, a phone plan using the company's massive network of satellites. Instead of relying on cell towers like other companies, Starlink Mobile could give you full bars even in Antarctica. Elon projects that this service could add $1 trillion in revenue to the company. These announcements both came in the span of a few days, and shares rocketed over 30%, back above the $135 IPO price. And liquidated thousands of short sellers.