Source: Fortune.com
Summary
Michael Burry, known for predicting the 2008 financial crisis, considered betting against SpaceX, Elon Musk’s rocket company, which recently went public with a valuation nearing $3 trillion. Burry reviewed trading options but decided against it due to expensive put options. He expressed skepticism about SpaceX’s valuation, calling it a “small space company, a niche telecom, a bedeviled social media company, and a Coreweave-light.” SpaceX’s financials show revenue growth but also increasing losses, with an accumulated deficit of $41.3 billion.
Our Reading
The numbers tell one story.
Michael Burry, known for his bold bets, considered taking on Elon Musk’s SpaceX but passed due to expensive options. Burry’s skepticism about SpaceX’s valuation is nothing new, but the company’s financials show a different story. With revenue growth and increasing losses, SpaceX is a complex bet. Burry’s decision not to short SpaceX may be wise, given Musk’s history of pushing back against those who bet against him.
Elon Musk’s empire is a high-stakes game, and Burry may not be ready to play.
Author: Evan Null
