Big Short investor Steve Eisman said he would not be surprised by a Tesla-SpaceX deal, fueling speculation about Elon Musk’s next major move. The comments come as SpaceX IPO demand reportedly tops $250 billion.
Key Takeaways:</p>
<ul><li>Big Short investor Steve Eisman said a SpaceX-Tesla deal is plausible but unattractive for SpaceX investors.</li><li>SpaceX IPO demand reportedly reached $250 billion, intensifying scrutiny over any Tesla linkup.</li><li>Rising EV competition could keep pressure on Tesla’s margins, strengthening Eisman’s skepticism.</li></ul><p>SpaceX’s intense IPO demand has fueled investor interest in any potential deal involving Tesla and Elon Musk’s business empire. Steve Eisman, the “Big Short” investor, said he would not dismiss a potential combination involving SpaceX and Tesla, even as he warned that SpaceX shareholders could view the idea as deeply unattractive.
During a June 8 CNBC interview, Eisman was asked whether Musk could use SpaceX’s stock value to acquire Tesla and bring the two companies under a broader X umbrella. Eisman treated the scenario as plausible, while making clear that he would not favor it as a SpaceX investor.
Eisman said:
“I wouldn’t doubt it. I think if if I was a shareholder of SpaceX, that’d be the last thing in the world I’d want him to do. But I’m sure he’s going to do it.”
SpaceX has attracted extraordinary investor interest ahead of its IPO, with Reuters reporting more than $250 billion in demand against a planned $75 billion offering. The figures underscore the value investors place on the company as a standalone business.
Eisman is often called “The Big Short investor” because he was among the investors who bet against the U.S. housing market before the 2008 financial crisis. Alongside figures such as Michael Burry, Eisman’s role was chronicled in Michael Lewis’s 2010 book The Big Short, which was later adapted into a 2015 film.
Why Eisman Questions the Logic of a SpaceX-Tesla DealConcerns about Tesla’s profitability shaped Eisman’s view of a potential deal. He argued that the company’s earnings have deteriorated sharply in recent years amid intensifying competition in the EV market. That concern helps explain why he framed any Tesla deal as unattractive for SpaceX shareholders.
Electric vehicle economics formed the core of Eisman’s skepticism. He described the EV business as capital-intensive and highly competitive, suggesting Tesla faces pressure from heavy investment needs, pricing challenges, and slowing profit momentum.
Chinese competition added another concern. Eisman said China produces EVs more cheaply than Tesla, giving rivals a cost advantage. That issue could weigh on Tesla’s margins as global automakers fight for share in a crowded market.
Eisman reiterated:
“I wouldn’t doubt that he buys it, but like I said, that’s not something I would want to do.”
