The five-page document, which also detailed personal milestones from the firm's 30th anniversary, argued that SpaceX’s valuation lacks fundamental support. Einhorn pointed to a conversation with a billionaire investor who projected $1 trillion in revenue for the rocket firm—a figure exceeding the annual intake of Amazon or Walmart—without providing a logical basis for the claim. Greenlight’s letter suggested this narrative mirrors forecasts made by Elon Musk himself.
Beyond valuation concerns, the firm critiqued credit rating agencies for granting SpaceX an investment-grade status despite the company’s history of negative free cash flow. Einhorn noted the absence of precedents for such ratings in companies lacking a track record of positive earnings. These warnings arrive as Greenlight struggles to keep pace with broader market performance; the fund reported a 1.9% gain through June, trailing the 7% average recorded by other hedge funds due to misjudged positions in gold and interest rates.
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