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Is SpaceX is a comparatively 'safe' short, as its downside risk of 4x 5x 6x is so unlikely?
Investor summaryBearish
The author suggests shorting SpaceX is relatively safe due to its crazy valuation and unlikely 3x-6x upside.
Bear points
- The current valuation is already considered crazy and astronomically high.
- Upside is limited because a 3x to 6x increase would result in an absurdly massive market cap.
Post body
I'm very much not a short seller and not experienced with it.
But isn't the chance of SpaceX going to 3x or 6x so unlikely (as it would make the market cap so astronomically stupid and huge), so it would effectively limit your downside risk? Its not going to 10 Trillion is it.
Seems to me that the limited max price, plus the already crazy valuation, make it a much safer short than the average stock.
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