Key Facts

• SpaceX's stock has started to lose momentum after its blockbuster market debut, prompting a potential clash between investors betting against the company and the influx of mechanical buying.
• The stock's entry into major indexes will soon lead to billions of dollars in mechanical buying, as index funds and other passive investment vehicles are forced to purchase shares to track the indexes.
• Investors who have bet against SpaceX, known as short sellers, will face a new challenge as the company's stock becomes part of major indexes, potentially limiting their ability to profit from a decline in the stock price.
• The inclusion of SpaceX in major indexes will likely have significant implications for the stock's liquidity, volatility, and overall market performance, potentially affecting not only short sellers but also passive investors.