Billionaire David Einhorn Says SpaceX Is Making History, but Not in a Good Way

Billionaire hedge fund manager David Einhorn of Greenlight Capital has issued a stark warning regarding the valuation and credit risks surrounding Space Exploration Technologies (SPCX). Following its massive initial public offering that initially valued the company at $1.75 trillion, Einhorn criticized the market's aggressive pricing, cautioning that the historic IPO might mark a speculative top for the broader market. A central focus of Einhorn's critique is SpaceX's credit profile. He questioned credit rating agencies like Moody's for assigning investment-grade status to a firm with no track record of generating positive free cash flow. Even bullish Wall Street projections, such as Morgan Stanley's $300 price target, estimate that SpaceX will burn an average of $84 billion annually and not reach positive cash flow until 2035. Einhorn emphasized that any rating downgrades or sustained high interest rates could sharply inflate borrowing costs or trigger severe equity dilution, leaving investors with virtually no margin of safety.