Odaily reported that Michael Burry, best known for successfully shorting the U.S. subprime mortgage market, has addressed his current trading stance on SpaceX. Burry said he has not built either a long position or a short position in the company. According to his explanation, the reason is not primarily a judgment based on SpaceX’s fundamentals, but the fact that the cost of shorting is currently at a level he considers too high to bear. The related options costs are also too expensive, leaving him without a long or short exposure.
Burry Challenges the Gap Between SpaceX’s Valuation and Revenue
In his written remarks, Burry offered a sharp description of SpaceX’s business profile and market value. He described SpaceX as essentially “a small aerospace company, a niche-market telecom operator, a troubled social media company, and a CoreWeave-light computing power service provider.” His comments framed the company as a collection of businesses that, in his view, does not match its current market pricing.
Burry further noted that SpaceX has annual revenue of less than $20 billion while carrying a market valuation of about $3 trillion. The point of his remarks was not to announce a new trade, but to explain why he has not directly expressed his criticism through a short position. The distinction between wanting to short and actually holding a short position lies in the cost constraint he described, especially the elevated cost of options and short exposure.
Shares Continue to Rise After Listing
Burry’s comments came as SpaceX shares continued to climb following the company’s listing. According to the report, SpaceX rose 20% on its first trading day, and then gained more than 25% cumulatively over the following week. That share-price performance lifted the company’s market value further and placed it among the largest publicly traded companies by market capitalization.
The report said SpaceX’s market value has not only surpassed Berkshire Hathaway, but has also entered the world’s top five, ranking behind Nvidia, Google, Apple and Microsoft. Burry’s latest comments therefore center on two related points: he is criticizing SpaceX’s revenue scale, business composition and roughly $3 trillion valuation, while also making clear that he has not translated those views into a short position because the costs of options and shorting remain too high.