Mark Yusko isn't pulling punches on SpaceX or Elon Musk. The hedge fund manager and Morgan Creek Capital founder delivered one of the sharpest critiques of the SpaceX IPO in a recent intervie
Mark Yusko isn't pulling punches on SpaceX or Elon Musk.
The hedge fund manager and Morgan Creek Capital founder delivered one of the sharpest critiques of the SpaceX IPO in a recent interview, comparing the company directly to Dogecoin and accusing Musk of using retail investors as exit liquidity for himself and his venture capital backers.
Yusko's central argument is about float and control. Only 4 percent of SpaceX shares are currently outstanding in public markets, with Musk holding 46 percent and the remaining 50 percent locked up among early investors.
With that structure, Yusko argued, Musk effectively controls the price narrative while retail investors chase a story with no real exit valve when insiders eventually sell.
Related: This is what $1,000 invested in Dogecoin after Musk's endorsement is worth today
"SpaceX is the equivalent of Dogecoin," Yusko said. "Mark Cuban and Elon Musk own most of the coins and then there's this cult of people that own it and think it's worth something, but it's not worth anything. And if Elon sold one Doge, Doge would go to zero."
He acknowledged SpaceX has a real satellite business, but dismissed the AI data center narrative as technologically impossible and said the company's free cash flow remains deeply negative with no clear path to profitability.
Trending on TheStreet RoundtableYusko reserved his sharpest critique for investors comparing SpaceX to early Microsoft or Apple. At a $2 trillion starting valuation, he said the comparison is mathematically broken.
"The US GDP today is $31 trillion. If SpaceX goes 10x, you're saying one company with no profits is going to be half of US GDP. It's not going to happen," he said.
For anyone who bought SpaceX shares believing they were getting in early on the next great American company, Yusko's warning is direct, the structure is designed to benefit insiders on the way out, not retail investors on the way in.
When lockups expire and early holders start selling, he expects the price to fall significantly. "I think that goes down a lot. A lot," he said.
