Michael Burry, the investor known for “The Big Short,” says he is considering a potential bearish trade on Elon Musk’s SpaceX but ultimately is steering clear. In comments circulated online, Burry writes that he is “not involved with SpaceX now,” adding that he is neither “short nor, ahem, long.” While he says he is “tempted” to short the company, he argues SpaceX is “fundamentally a small space company,” suggesting that the size and fundamentals of the business do not make the trade sufficiently attractive to pursue.
CNBC reports that Burry also points to SpaceX’s valuation, saying its market capitalization has grown to levels that can dwarf those of many established businesses, which is one factor that draws his attention. However, he appears to reject the idea after weighing the cost and structure of potential alternatives, including expensive options. Across the outlets, the consistent message is that Burry is publicly mulling a bet against SpaceX but does not currently have a position and is choosing not to act.
