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SpaceXalready nailed its first test stock market test.
The tough question is whether investors can detach the stock from the company.
Elon Musk’s rocket, satellite, and artificial intelligence company has become one of the most controversial new listings on the market after a record-breaking initial public offering and rapid ascent.
That’s whyMichael Burry’s warning of late has such weight.
Not only isSpaceX (SPCX)overpriced, he says, but the bearish trade may also be as dangerous as the bullish transaction.
Neither short nor, ahem, long,” Burry wrote, according toFortune.
The secret message in Burry’s SpaceX comments isn’t that a famous skeptic believes a hot stock seems expensive.
The more useful investing conclusion is that SpaceX has quickly become a market structure tale.
The stock is locked between two forces that can punishretail investors: a value that may already be priced in years of faultless execution and a fan-driven trading setup that can make shorting the company excruciatingly expensive.
Related: SpaceX stock joins AI bond frenzy That makes this case different from a normalIPOargument.
SpaceX is not being valued as a launch company.
And investors are baking in Starlink, government contracts, satellite broadband, defense work,AIinfrastructure, Musk’s brand, and long-term goals that reach far beyond Earth.
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