Eisman Calls SpaceX 100x-Revenue Valuation Absurd, Labels Grok a Third-Tier AI Product
Updated
Updated · Fortune · Jun 27
Eisman Calls SpaceX 100x-Revenue Valuation Absurd, Labels Grok a Third-Tier AI Product
1 articles · Updated · Fortune · Jun 27
Summary
SpaceX’s roughly $19 billion in revenue does not justify a valuation above 100 times sales, Steve Eisman said, arguing the company is priced on hype rather than fundamentals.
More than 90% of SpaceX’s stated $28.5 trillion total addressable market is tied to AI, he said, but dismissed Grok as a weak offering and claimed even some Musk engineers avoid using it.
Eisman also attacked SpaceX’s strategy of combining rockets, Starlink and AI, saying investors favor pure plays, and warned any move to buy Tesla would add a struggling business.
AI economics are worsening for hyperscalers, he argued, citing Alphabet’s AI spending rising from $80 billion last year to $180 billion-$190 billion this year, forcing more equity funding as competition erodes moats.
He stopped short of urging a short position, saying only that SpaceX looks fundamentally ridiculous and could stay that way for a long time.
With a $5B loss and a $1.8T valuation, is SpaceX's IPO built on hype or a truly revolutionary future?
As SpaceX's AI division loses billions, are 'picks and shovels' suppliers like Nvidia the only safe bet in the AI gold rush?
SpaceX’s $2 Trillion Valuation Under Fire: Grok AI, Capital Burn, and Eisman’s Stark Warning
Overview
SpaceX’s AI segment, including Grok’s enterprise services and X data monetization, generated $3.2 billion in revenue in 2025, but this came with a dramatic surge in capital expenditure—reaching 215% of revenue in early 2026, up from 42% the previous year. While Starlink remains a strong revenue generator at $11 billion, analysts like Steve Eisman have raised concerns about whether SpaceX’s heavy investment in AI can achieve financial viability, especially given the highly competitive AI market. The company’s ambitious AI strategy requires significant revenue growth to justify its high spending and maintain overall financial health.