Scott Galloway Slams SpaceX Valuation, Sees Massive Downside

Galloway attributes the current inflated price to artificial market mechanics, noting that only a tiny fraction of shares were initially available for public trading. This limited supply, combined with forced buying from index-tracking funds following the stock's inclusion in the Nasdaq-100, has created a distorted valuation. While he acknowledges Musk’s prowess as an engineer, he characterizes the current market enthusiasm as a byproduct of financial engineering rather than industrial performance.

Skepticism surrounding the company extends beyond Galloway. George Noble, former manager of the Fidelity Overseas Fund, identifies SpaceX and Tesla as prime short targets. Noble highlights that the firm trades at roughly 90 times revenue, a metric he deems unsustainable for a company reliant on debt-fueled expansion and AI-infrastructure speculation. Despite the grim outlook, Galloway warns against betting against the stock directly. He suggests that the company’s status as a potential meme stock, driven by Musk’s ability to generate hype for future projects, makes it too volatile for traditional short-selling strategies.