'Big Short' Investor Steve Eisman Says AT&T, Verizon and T-Mobile Are 'Uninvestable' as Elon Musk Targets US Wireless Market

‘Big Short’ investor Steve Eisman says America’s three biggest wireless carriers are no longer worth owning as Elon Musk’s SpaceX prepares to challenge their dominance.

“I think the big three are just uninvestable,” Eisman said on the Nov. 6 episode of The Real Eisman Playbook, just three weeks after calling the threat “probably overblown.”

His warning followed SpaceX’s Nov. 4 deal with Qualcomm (NASDAQ:QCOM) to supply technology for tens of thousands of 5G cell sites, with deployment beginning in 2027.

From ‘Overblown’ to ‘Uninvestable’

On Oct. 16, Eisman called the telecom selloff a “telepocalypse,” but said the threat was likely overdone. Building a conventional network would be extraordinarily expensive, he argued, although he warned that “narratives are powerful.”

He noted that T-Mobile (NASDAQ:TMUS) traded at around 14 times projected 2026 earnings, down from a multiple in the 20s.

A week later, Eisman flagged the risk to SpaceX (NASDAQ:SPCX), warning that Starlink’s expansion could turn it from a “cash cow” into a “cash drain.”

By Oct. 30, he was calling T-Mobile’s strong earnings “largely irrelevant,” arguing that Musk’s ambitions mattered more to investors than current profits.

By then, SpaceX was reportedly seeking access to at least 80,000 U.S. cell sites, including through talks with Crown Castle. Days later, reports emerged SpaceX was exploring a deal with Boost Mobile’s parent, EchoStar, to acquire the carrier or gain access to its network.

The danger extends beyond losing subscribers. A cheaper fourth carrier could force AT&T (NYSE:T) and Verizon (NYSE:VZ), along with T-Mobile, to cut prices across millions of existing customers, squeezing margins while their expensive networks remain in place.

Can Musk Really Challenge the Big Three?

Telecom expert William Webb told Benzinga that investors were overreacting. He estimated the immediate threat justified only a 1% to 2% cut to T-Mobile’s valuation, rather than 7% to 15%.

Webb estimated SpaceX could need another $120 billion to $130 billion to approach the incumbents’ nationwide capabilities, including substantial spectrum purchases.

Roger Entner of Recon Analytics told Benzinga that a narrower, rural-first network could cost $10 billion to $15 billion, excluding spectrum.

“He plays where he’s strong and the other guys are weak,” Entner said.

What Prediction Markets Say

Polymarket traders give SpaceX a 21% chance of launching a qualifying U.S. mobile service by June 2027 and 53% by December 2027, with roughly $46,000 traded.

The contract allows SpaceX to qualify by launching a service using another carrier’s network.

Eisman’s warning suggests investors may have more to fear from the threat of competition than from its immediate impact on profits.

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