Key insights
- The author expresses a strong bearish sentiment towards SpaceX, citing its high valuation, potential value destruction from xAI, leadership concerns, and reliance on government contracts. The S&P 500's refusal to waive rules for SpaceX's inclusion is seen as a negative signal, suggesting the stock is overvalued and ripe for shorting. The author predicts a significant price decline.
How many warning signs of a rug pull does this have? Let's see: * Insane PE ratio at $135 asking price and $1.5T * xAI hold a real threat of value destruction * Erratic ketamine junkie at the helm overpromises and fails on his deliveries * welfare queen rocket company uniquely dependent on Uncle Sucker? * Filing on April 1 shows they know this stock is an April Fools joke for fools only.
How far down can we ride this boat anchor? $135 down to $80 would be a tidy short term profit.