▲ SpaceX
Michael Burry, the hedge fund manager and real-life inspiration for the movie "The Big Short," revealed that he considered betting against SpaceX but decided against it because the option premiums were too expensive.
In a newsletter sent to clients on June 16 (local time), Burry stated, "I am not involved with SpaceX. I am not short, and I am not long."
He explained that while he had reviewed various option strategies to bet on a decline in SpaceX's stock price, he ultimately decided not to execute any of them.
He noted that put options betting against SpaceX were too costly, citing an example where a contract with a strike price of $100 expiring in December 2028 was trading at approximately $25 per contract. He concluded that it would be difficult to generate a profit after accounting for such high costs.
Burry also expressed strong skepticism regarding SpaceX's valuation, which is approaching $3 trillion.
He pointed out that the company's valuation is significantly inflated relative to the actual scale of its business.
"SpaceX is a small space company with less than $20 billion in annual revenue, a niche telecommunications firm, a troublesome social media company, and merely a minor version of CoreWeave," he said.
Burry particularly criticized the market capitalization of SpaceX as reaching an irrational level, especially when compared to Berkshire Hathaway, led by Warren Buffett.
"Three days after going public, SpaceX's market cap became 2.5 times that of Berkshire Hathaway," he pointed out. "What is Berkshire Hathaway? It is a company that two of the greatest investors of our time spent a century of their lives painfully building."
(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.