SpaceX shorts hit $25 billion against Musk

SpaceX short positions surged to 206 million shares, valued at $25 billion, accounting for 32% of its publicly traded shares.

SpaceX will report its first quarterly earnings on Aug. 4, followed by the IPO lock-up expiration allowing insider share sales.

Over 80% of analysts recommend buying SpaceX, with Macquarie reaffirming an 'outperform' rating and calling the recent selloff a buying opportunity.

SpaceX generated $19 billion in revenue over the past year (up 33% YoY), but trades at over 80 times sales and continues to lose billions annually.

Short squeeze potential exists due to large short interest and limited share availability, but requires a catalyst to force sellers to cover.