Investor Michael Burry, known for his correct prediction of the subprime mortgage crisis, stated on Tuesday that he currently holds no position in SpaceX. He noted that the cost of options to short the stock remains prohibitively high, despite his skepticism regarding the company's near-$3 trillion valuation.
In a post on the SubStack platform, Burry mentioned he had evaluated several put option trades related to SpaceX but ultimately did not participate in any. "I am not in SpaceX, short or long, at the moment," he wrote. SpaceX, a company involved in rocket launches, satellite internet, and social media, has been one of the most anticipated initial public offerings in recent years. Its stock surged 20% on its first trading day and has gained over 25% so far this week, a historic debut that propelled Elon Musk to become the world's first trillionaire.
Burry provided an example: when SpaceX shares were around $212, a put option with a $100 strike price expiring in December 2028 was quoted at approximately $25 per contract. A similar contract expiring in June 2027 was about $13, while a put option expiring in December 2026 was trading around $6.75.
"I was tempted by the short-term ones, but I passed," Burry stated. "Hopefully, SPCX will stabilize in the mid-$200s and the volatility in the put chain will bleed off."
Nevertheless, Burry continues to question SpaceX's valuation. He described the company as "essentially a small space business, a niche telecom, a troubled social media company, and a lite version of CoreWeave," with annual revenue under $20 billion. He pointed out that SpaceX's market capitalization now surpasses that of many established corporations and vast fortunes, exceeding even Warren Buffett's Berkshire Hathaway and the combined market value of entire industries and some national economies.
"Berkshire Hathaway was overtaken by 2.5x in three days. That's the life's work of two investing masters across two centuries," Burry wrote. His comments have added fuel to the ongoing debate about whether SpaceX's valuation is excessive.
Burry is not alone in his skepticism. Another notable figure from the "Big Short" camp, Steve Eisman, previously called SpaceX's valuation "ridiculous" in an interview. Eisman highlighted that the company's capital expenditure as a percentage of revenue had surged from 42% in fiscal 2023 to 215% in the first quarter of 2026, primarily due to its new artificial intelligence ventures. He also emphasized that the IPO prospectus attributed 85% of the company's total addressable market to the AI sector—a figure nearing the annual GDP of the United States—with logic that "reads like science fiction."
Wall Street research firms also express caution regarding SpaceX's valuation. In a report dated June 8, Morningstar equity analyst Nicolas Owens stated the stock is "severely overvalued," estimating a fair value of only $780 billion, or approximately $60 to $63 per share. This valuation represents a discount of over 55% to its IPO target price of $1.75 trillion.
Last month, Burry urged investors to reduce their exposure to soaring technology stocks, advising them to "resist greed" as the AI frenzy and momentum trading are significantly inflating valuations. He has warned for months that the stock market's obsession with AI is increasingly resembling the tail end of the dot-com bubble.
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