Michael Burry Questions SpaceX's $3 Trillion Valuation
Famed investor Michael Burry is skeptical about SpaceX's staggering $3 trillion market valuation. Discover why he hesitates to bet against the company despite its recent stock market debut.
Burry's Skepticism on SpaceX
Michael Burry, renowned for predicting the housing market collapse, has raised eyebrows with his doubts about SpaceX's valuation. Despite the company recently making Elon Musk the world's first trillionaire, Burry believes that the $3 trillion market cap is inflated, labeling SpaceX as fundamentally a small space company.
Burry's analysis reveals that SpaceX generates less than $20 billion in annual revenue, which he argues is insufficient to justify its massive valuation. He explored options to bet against the company but ultimately decided against it, stating, "I am not involved with SpaceX now. Neither short nor, ahem, long."
- Key points from Burry's perspective:
- SpaceX's stock trades between $190 and $200 per share.
- Burry examined put options with strike prices as low as $100.
- He believes the stock may settle in the mid-$200s.