Michael Burry Passes on SpaceX Puts as He Questions Nearly $3 Trillion Valuation
Updated
Updated · CNBC · Jun 16
Michael Burry Passes on SpaceX Puts as He Questions Nearly $3 Trillion Valuation
1 articles · Updated · CNBC · Jun 16
Summary
Michael Burry said he holds no SpaceX position after reviewing bearish options trades, deciding the cost of betting against the stock was too high.
A December 2028 $100 put was priced near $25 with SpaceX around $212, while similar June 2027 and December 2026 contracts cost about $13 and $6.75.
Burry still argued SpaceX's value is disconnected from fundamentals, calling it a sub-$20 billion revenue business now worth more than Berkshire Hathaway and many national economies.
The skepticism follows SpaceX's blockbuster IPO: shares jumped 20% in their first full trading day and are up more than 25% for the week, helping make Elon Musk the first trillionaire.
Burry has been warning for months that AI- and momentum-driven stock gains resemble the dot-com bubble's final stage, urging investors last month to "reject greed."
If even Michael Burry can't afford to short SpaceX, has the market's AI fever broken traditional valuation rules?
Is Elon Musk’s near-total control of SpaceX the key to innovation or the company’s single greatest financial risk?
SpaceX’s Record $1.75 Trillion IPO: Burry’s Alarm, Index Fund Risks, and the AI Bubble Debate
Overview
In June 2026, SpaceX launched its highly anticipated IPO, sparking immediate concern from investor Michael Burry. He warned that, due to Nasdaq’s Fast Entry rules, passive index funds and ETFs could not buy SpaceX shares right away, creating a waiting period. Burry predicted this delay would cause funds to sell other tech stocks to raise cash, leading to selling pressure in the market. Once the waiting period ended, he expected a surge of billions of dollars into SpaceX shares as index funds began buying, potentially distorting prices and highlighting risks driven by hype rather than fundamentals.