Legendary trader Tom Sosnoff isn’t the least surprised by the brutal battering SpaceX (NASDAQ:SPCX) shares have taken over the past month. Here’s what he told Benzinga this week:

“I have been saying from day one that SpaceX would trade under the IPO price,” Sosnoff said on Benzinga’s weekly show “The Drift.”

“I’m still short puts in there and the puts haven’t gone anywhere,” Sosnoff said, noting that though SpaceX stock has fallen, the price of his puts has remained the same.

SpaceX Faces Historical IPO Challenges

Despite the initial buzz, SpaceX’s stock is navigating a challenging post-IPO landscape. Historical data from First Trust Portfolios indicates that most IPOs underperform over time, with a 25-year market pattern showing a majority of newly listed U.S. stocks generate negative returns within a few years. SpaceX’s high valuation and public visibility mean it must quickly convert its narrative strength into sustained financial performance to avoid common pitfalls.

Adding to the tension, Elon Musk has issued a warning to short-sellers betting against SpaceX. Musk’s recent comments suggest that those maintaining significant short positions in SpaceX may face challenges, drawing parallels to his past confrontations with Tesla short-sellers.

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