Michael Burry says he’s “tempted” to short SpaceX, but argues the setup is “not enticing enough”

Michael Burry, the investor known for high-profile bearish wagers in past market cycles, said he has considered taking a negative position on SpaceX but concluded the idea is not compelling enough to act on. In a statement reported by Yahoo Finance, Burry wrote that he is “tempted” to short Elon Musk’s SpaceX, but added that it is “not enticing enough” for the kind of exposure he would want.

Burry’s comments also suggested he is not taking any position in SpaceX right now. “I am not involved with SpaceX now. Neither short nor, ahem, long,” he wrote, according to the report. The phrasing indicates he has no active trade in either direction at the moment, even as he entertained the possibility of a bearish bet.

The investor framed his hesitation by describing SpaceX as “fundamentally a small space company,” a characterization that implies he sees limits to how attractive or tradable the opportunity would be. Without additional detail from the reported remark, it is unclear whether Burry was referring to balance-sheet scale, the visibility of financials, the liquidity of shares, or the broader risk profile of the private company.

Burry’s broader track record has often centered on expressing skepticism through options or short positions when he believes expectations are mispriced. In this case, however, he appears to be drawing a line between being intellectually interested in a downside view and believing the setup is strong enough to justify a trade. The report does not provide specifics on what would have to change for him to reconsider.

For Musk’s space venture, the comments land against a backdrop in which SpaceX has continued to attract attention from investors, customers, and regulators, but remains privately held. That means public-market mechanics that traders rely on, such as readily available market pricing and shareholder disclosures, do not apply in the same way as they do for publicly traded companies. Burry’s reference to SpaceX being “small,” and his decision not to take a position, aligns with the idea that private-company access and information constraints can reduce the attractiveness of traditional bearish strategies.

The mention of Tesla in the story is mostly contextual, since Burry is associated with markets where Tesla is widely followed. Even so, his remarks were directed at SpaceX specifically, and there was no indication in the reported account of any new Tesla-related position, action, or target in the same communication.

What is not disclosed in the report is equally important. Burry did not lay out the concrete thesis for a short, such as particular cost overruns, funding terms, launch failures, contract economics, or valuation assumptions. He also did not indicate a time horizon or any trigger that would cause him to move from “tempted” to active trading.

Market watchers will likely treat the statement as a announcement of continued scrutiny rather than an announcement of action. The next practical question is whether Burry elaborates publicly, or whether events tied to SpaceX’s programs, contracts, or fundraising create a clearer, more “enticing” trade setup. For now, his own words point to observation over execution.