Hedge fund manager David Einhorn has criticized the recent initial public offering of SpaceX (NASDAQ: SPCX), labeling it a sign of speculative excess and questioning its high valuation.

Greenlight Capital founder Einhorn, known for previously shorting Tesla Inc. (NASDAQ: TSLA), detailed his concerns in the firm’s latest quarterly letter. He described the listing as potentially marking a speculative top in the market.

Criticism of IPO Process and Ratings

Einhorn questioned the mechanics of the offering, noting that less than 5% of the company was floated despite its inclusion in major indexes. He termed this an "insult to value investing."

He also targeted credit rating agencies for assigning investment-grade status to SpaceX. Einhorn highlighted that the company has no history of generating free cash flow and forecasts multi-year negative free cash flow.

Revenue Target Skepticism

The letter addressed Elon Musk’s forecast that SpaceX will achieve $1 trillion in annual revenue by 2030. Einhorn noted this figure would exceed the annual revenue of Amazon or Walmart.

He recounted asking an investor with billions invested in the company for evidence supporting this claim. The investor offered no explanation, instead pivoting to criticism of short sellers.

What the Numbers Show

The divergence between SpaceX’s investment-grade credit rating and its disclosed lack of positive free cash flow history highlights a disconnect in traditional risk assessment metrics applied to high-growth technology assets.

Fund Status

Greenlight Capital stopped accepting new investments earlier this year. Its successor entity, DME Capital Management, recently announced new investments focused on companies facing buyouts or spinoffs.

Space Exploration Technologies Corp. (NASDAQ: SPCX) reported that its Grok Voice AI system now handles over 15,000 inbound customer support and sales calls daily for Starlink. The system also fulfills more than 3,000 orders each week across voice and chat channels.

Elon Musk confirmed the deployment on X, stating that Grok Voice is being used "at scale for support & sales." SpaceXAI disclosed the figures in a post amplified by Musk on Monday.

Operational Scale and Capabilities

The AI agent diagnoses hardware issues, ships replacements, and grants service credits without human intervention. This deployment builds on an April rollout of Grok Voice Think Fast 1.0, which previously converted 20% of sales inquiries and resolved 70% of support inquiries autonomously.

In July, SpaceXAI upgraded the system to Grok Voice Think Fast 2.0, citing improvements in intelligence, transcription, and tool-use reliability. A/B testing on Starlink’s customer-service line showed a significant increase in both sales conversion rates and support containment rates. The upgraded model became the default version on August 5.

Financial Context and Growth

The expansion coincides with rapid growth in Starlink’s subscriber base. Reuters reported that Starlink doubled its subscribers to 12 million by the end of June. Musk later stated the service had crossed 13 million consumer subscribers. Connectivity revenue jumped 66% in SpaceX’s first quarterly results as a public company.

SpaceX’s AI unit, encompassing Grok and X, generated $2.56 billion in second-quarter revenue. However, heavy infrastructure spending weighed on results. The company describes AI as its largest long-term opportunity, estimating a $26.5 trillion addressable market.

What the Numbers Show

The operational data reveals a high volume of transactional activity managed autonomously. With 3,000+ orders fulfilled weekly against a backdrop of 15,000+ daily interactions, the system handles a substantial portion of routine commerce and support tasks. This automation supports revenue growth, evidenced by the 66% jump in connectivity revenue, while potentially containing costs associated with human customer service teams.

SPCX shares were up 0.02% to $135.04 during overnight trading on Monday.