Jun. 11 at 12:57 AM
Short seller Jim Chanos criticized SpaceX's upcoming IPO, arguing that its
$1.75 trillion valuation is driven by unrealistic expectations rather than fundamentals. SpaceX plans to raise
$75 billion in what could become the largest IPO ever, listing Friday in New York under the ticker SPCX.
Chanos said SpaceX's valuation cannot be justified under any reasonable five-year scenario and cited governance concerns as another reason the company could attract short sellers. He warned that bullish markets often reward ambitious narratives over financial reality.
He contrasted SpaceX with Tesla, noting that SpaceX trades at roughly 90 times sales versus Tesla's 14 times sales. Chanos also reiterated his bearish stance on data center operators, calling the sector a low-return business exposed to depreciation risks and weak pricing power, particularly for firms leasing AI infrastructure built with chips from suppliers such as Nvidia.
$SPCX $TSLA $NVDA