Steve Eisman Raises Concerns Over SpaceX AI Business Ahead of Planned Record IPO

SpaceX is preparing for a record initial public offering (IPO), while investor Steve Eisman said the company’s prospectus raised warning signs tied to rising capital spending. According to Odaily, Eisman, who was portrayed as the trader who bet against the housing market in the film The Big Short, said in a CNBC interview on Monday that he does not plan to short SpaceX shares at the time of the IPO but is concerned about the company’s artificial intelligence business. Eisman said SpaceX’s capital expenditures have increased significantly, describing the company as becoming highly capital-intensive. He cited figures showing that in fiscal year 2023, capital expenditures accounted for 42% of revenue, while in the most recent quarter they reached 215% of revenue.