‘Big Short’ investor Steve Eisman: I'm 'not a fan' of the upcoming SpaceX IPO
Speakers
Steve Eisman
— Portfolio Manager, Scion Asset Management
Summary
Steve Eisman discusses his bearish view on the upcoming SpaceX IPO, citing extreme capital intensity and unrealistic prospects. He also comments on the broader tech shift to asset-heavy models, commoditization of AI, and declining Tesla earnings.
- Eisman is negative on the SpaceX IPO due to rising capex and AI focus.
- He notes the prospectus includes speculative elements like asteroid mining.
- Eisman believes AI LLMs are commoditized with no competitive moats.
- He observes the tech sector is transforming from asset-light to asset-heavy.
- Eisman mentions Tesla's earnings have declined for four consecutive years.
- He expresses no interest in shorting SpaceX, just staying away.
- The discussion also covers Google's $80 billion capital raise and Berkshire's participation.
- Eisman questions the sustainability of AI business models given rising token costs.
Trade Ideas
Avoid SpaceX IPO due to capital intensity.
SPCX is watch-only per manual routing rule; do not treat SpaceX-related ticker mentions as long/short/avoid. Eisman is not a fan of the upcoming SpaceX IPO because the business has become incredibly capital intensive, with capex rising from 42% of revenue in FY2023 to 215% of revenue in the most recent quarter due to AI investments. He points out that the prospectus includes unrealistic elements like asteroid mining, and that Grok is not a world-class AI company. He also argues that AI LLMs are commoditized with no moats, making the massive spending questionable. He has no interest in shorting it but is not playing.
Up Next
This CNBC video, published June 08, 2026, features Steve Eisman discussing SPCX. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Steve Eisman · Tickers: SPCX