On Thursday, AST SpaceMobile Inc (NASDAQ:ASTS) is down more than 7 per cent after Kerrisdale Capital stated it is short the stock questioning the company’s credibility.

AST SpaceMobile is stated to be working on a technology that is likely to allow smartphones to connect to satellites internationally.

However, Kerrisdale, best known for short-selling, asserts AST SpaceMobile is a USD 1.8 billion satellite firm trying to sell the dream of connecting billions of people with mobile broadband directly to their phones from space but without a credible ability to bring that dream to reality.

It added that the firm’s satellite design is destined to fail, which it believes is unsurprising due to AST management’s uninspiring background and a business case that makes little sense in almost all aspects.

Kerrisdale also questioned why AST keeps pushing out the projected timeline while its stock has gained significantly in the past few months. In a further scathing assessment, the short-seller said that AST is an ambitious, wildly risky science project that has no business being public.