Michael Burry says he's tempted to bet against SpaceX, but passes on expensive options
Hedge fund manager Michael Burry dismissed SpaceX’s $3 trillion valuation as excessive but declined to short the stock, calling put options too expensive. He characterized SpaceX as a 'small space company' and a 'bedeviled telecom,' though he avoided direct bearish bets. The decision follows a 25% post-IPO surge for SPCX. Burry’s stance contrasts with his reputation as a short-seller, as he opted to wait for a mid-$200s stock price rather than engage in costly trades.
What changed
New details confirm Burry explicitly ruled out shorting SPCX due to overpriced options, while earlier reports only hinted at his hesitation.
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Michael Burry skips SpaceX bet despite valuation concerns, cites high option costs
confidence 96%Hedge fund manager Michael Burry dismissed SpaceX’s $3 trillion valuation as excessive but declined to short the stock, calling put options too expensive. He characterized SpaceX as a 'small space company' and a 'bedeviled telecom,' though he avoided direct bearish bets. The decision follows a 25% post-IPO surge for SPCX. Burry’s stance contrasts with his reputation as a short-seller, as he opted to wait for a mid-$200s stock price rather than engage in costly trades.
What's confirmed:
- Michael Burry considered betting against SpaceX (SPCX) but passed due to expensive put options and its $3 trillion valuation.
- Burry described SpaceX as a 'small space company' and a 'bedeviled telecom,' questioning its market capitalization relative to established businesses.
- He stated he would prefer to see SPCX settle in the mid-$200s before taking a bearish position, avoiding the high cost of shorting.
- Burry has no current short or long position in SpaceX, according to multiple sources.
- SpaceX’s stock has risen 25% since its IPO despite skepticism over its valuation.
- Burry’s decision follows widespread concerns about inflated valuations in tech and space sectors, including among Korean retail investors.
Still unconfirmed:
- SpaceX’s IPO could trigger a short-term liquidity squeeze across tech stocks and crypto, though no direct evidence supports this claim beyond a single analyst’s comment.
- Elon Musk framed the SpaceX IPO as a move to 'take the fiction out of science fiction,' but this does not directly relate to Burry’s trading stance.