SpaceX, Tesla Shed $1.5 Trillion in Value; SpaceX Down 50%, Tesla 18%
SpaceX and Tesla have lost about $1.5 trillion in combined market capitalization since mid-June. SpaceX shares have fallen nearly 50% from their highs, while Tesla has dropped 18% since its earnings release last week. The earnings trigger a lockup mechanism allowing insiders to sell shares before the standard 180-day period, releasing over 900 million shares (20% of lockable shares) for trading. SpaceX earnings are due next Tuesday, with the lockup ending two days later. Implied volatilities stand at 160 for SpaceX and 55 for Tesla. Options activity shows continued bullish bias among small traders but growing caution from large traders.
SpaceX and Tesla have lost a combined market value of approximately $1.5 trillion since mid-June. SpaceX shares have fallen nearly 50% from their highs, while Tesla has dropped 18% since its earnings release last week. The earnings report will also trigger a unique lockup mechanism, allowing insiders to begin selling shares before the standard 180-day lockup period. This will release over 900 million shares, representing about 20% of the total lockable shares, into trading.
SpaceX earnings are scheduled for next Tuesday, with the lockup ending two days later. Data shows that the implied volatility for SpaceX contracts expiring on August 7 is 160, while the comparable figure for Tesla contracts is 55. Tesla's current implied volatility stands at 52.
Despite the decline in share prices, SpaceX traders remain broadly optimistic overall. Daily call option volume exceeds put option volume, with traders buying nearly 100,000 call options on Tuesday versus only 46,000 put options. However, the divergence between small-scale and large-scale traders is widening, with the latter group becoming more cautious. By volume, the most active contract on Tuesday was the call option with a strike price of $330 expiring next Friday, which saw 21,000 contracts traded at a premium of approximately $770,000. By trade size, the call option with a strike price of $130 expiring in November recorded 5,400 contracts traded at a premium of $8.7 million, indicating that large traders remain bullish but with reduced conviction.