SPACEX Heads To Nasdaq — But Steve Eisman Is ‘Not A Fan’ Of The IPO Or Potential Tesla Merger
Stocktwits
Last updated: June 9, 2026
Investor Steve Eisman has voiced significant skepticism regarding SpaceX's anticipated Initial Public Offering (IPO) and a potential merger with Tesla. He argues that SpaceX's increasing focus on artificial intelligence (AI) has made it an exceptionally capital-intensive business, diminishing its competitive advantages.
- Eisman points to SpaceX's mounting capital expenditures, which have surged dramatically as the company invests heavily in AI infrastructure, moving away from a more asset-light model. He contends that current AI products, including SpaceX's Grok, are largely undifferentiated and commoditized, lacking strong competitive moats. The immense costs associated with AI development and compute needs are transforming the tech sector into a heavy industry, impacting even established giants. Eisman also foresees pricing pressures as companies begin to charge actual costs for AI tokens, which could affect AI usage. While acknowledging SpaceX's strength in space operations, he asserts that the company's valuation heavily relies on AI, with over 85% of its total addressable market tied to AI rather than its core space and Starlink businesses. Furthermore, he is unsupportive of a merger with Tesla, citing the electric vehicle maker's declining earnings and increasing competition.
