SpaceX IPO being snapped up has triggered nationwide frenzy, but well-known short sellers were the first to pour cold water: don't foot the bill for the distant "hope and dream" that seems out of reach!

Renowned short seller James Chanos said that the sensational IPO of SpaceX is driven more by investors' enthusiasm for Elon Musk and artificial intelligence, rather than by financial fundamentals. He believes that the company's valuation is difficult to justify under any reasonable business assumptions. In the lead up to the highly anticipated IPO of the company, Chanos & Co. founder Chanos gave an interview. He described this transaction as a crucial test of market sentiment, as investors pour large sums of money into speculative growth stories. Speaking at the iConnections Global Alternative Investment Conference in New York, Chanos said, "We are about to witness an IPO raising $75 billion with a valuation close to $2 trillion, while the company's revenue is only $19 billion and free cash flow is negative." The conference gathered over 2,500 institutional asset allocators and fund managers. "This is essentially a 'selling hope and dreams' IPO." This offering has become one of the most anticipated stock debuts in history, with market demand reportedly several times oversubscribed. However, Chanos stated that this valuation reflects expectations for future business, which are largely still theoretical at this point, including satellite data centers, lunar manufacturing, and other risky investments tied to Musk's long-term vision. He sarcastically remarked, "The total addressable market (TAM) of space is infinite. You can fabricate any story you want - Mars colonization, lunar factory, space data center - to justify this valuation." Chanos compared the premium given to SpaceX with the premium given to Tesla by investors. Tesla's market value has long been supported by market expectations surrounding autonomous driving, Siasun Robot & Automation, and artificial intelligence. However, he argued that SpaceX's valuation multiples are much higher. He pointed out, "Based on future promises, Tesla trades at about 14 times its revenue. SpaceX's IPO price is about 90 times its revenue, these are completely different species." While Chanos did not explicitly state that he would short the stock immediately, he expressed doubts about the pricing of the IPO. He believes that existing businesses, including the Starlink satellite internet business, could support a valuation of "several hundred billion dollars," but questioned whether the rest is really worth $1.5 trillion. Chanos also refuted claims that satellite data centers could become a disruptive new market. He stated that while it is technically feasible, such projects face significant economic and operational obstacles, including launch costs, maintenance challenges, insurance requirements, and the need for extremely high redundancy. "In data centers, equipment breaks down all the time," he added, "If this happens in space, you can't just send a technician with spare parts up to repair." He further pointed out that SpaceX's "Starship" rocket - a core vehicle crucial for lowering launch costs and achieving many of the company's future ambitions - has not yet proven its ability to consistently successfully enter orbit. From a broader perspective, Chanos believes that SpaceX's IPO is a typical example of how the current market is increasingly willing to pay for distant possibilities while ignoring current economic realities. Chanos lamented, "Bull markets give premiums to promises; bear markets discount reality. And right now, we are clearly in the former."