Elon Musk's SpaceX and Tesla Lose $1.5 Trillion Market Cap Amid Earnings and Lockup Risks
SpaceX and Tesla have collectively lost about $1.5 trillion in market value since mid-June, with SpaceX down nearly 50% from its peak and Tesla falling by 18%. The uncertainty ahead includes the company's first earnings report on August 4 and a shortened lockup period for insiders that will allow over 900 million shares to be sold starting two days later. Options data suggests significant volatility, with implied price swings of up to 15% expected after earnings. The situation is complicated by elevated options-implied volatility in SpaceX at 122—higher than nearly all S&P 500 companies—and a potential conflict between the risk from earnings and insider selling. Traders are divided: while retail traders remain optimistic with more call options being bought, larger institutional investors appear cautious. Despite recent losses, some market participants continue to bet on SpaceX's long-term upside, as seen in heavy trading of bullish options contracts.
Topics: implied_volatility lockup_period options_trading SpaceX Tesla