Short sellers are piling up big year-to-date mark-to-market gains betting against Tesla Inc. (NASDAQ:TSLA), while SpaceX (NASDAQ:SPCX) has also become a standout winner on the short side.
Tesla shorts are sitting on nearly $9.1 billion in mark-to-market profits this year, making it the most profitable short trade so far this year. SpaceX now ranks as the second-most-profitable short trade on the market, S3 Partners said, per the New York Times.
SpaceX Faces Stock Pressure Despite Ark Buying
SpaceX’s stock has been under pressure, even as Cathie Wood‘s Ark Invest continues to buy shares. On Monday, Ark purchased $14.1 million worth of SpaceX stock, maintaining its investment strategy despite the stock’s decline.
The pressure on SpaceX shares comes as the market anticipates a potential increase in share supply with the upcoming lock-up expiration on Aug. 6, when up to 911.5 million shares could become eligible for trading.
Ark Invest Increases Stake in SpaceX and Tesla
Ark Invest’s confidence in SpaceX and Tesla remains strong. On Tuesday, the firm added $12.2 million worth of SpaceX shares and $12.4 million of Tesla shares across several ETFs.
This move comes amid ongoing market debates surrounding growth valuations and long-term strategies for both companies. Ark’s continued investment in these stocks signals its belief in their potential despite current market challenges.
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