Elon Musk stocks take $1.5 trillion hit with fresh test in SpaceX lockup ahead - CNBC

What the report says

CNBC reported that companies closely associated with Elon Musk have seen a sharp combined loss in market value, with SpaceX and Tesla shedding about $1.5 trillion since mid-June. According to the report, SpaceX has fallen almost 50% from its peak, while Tesla is down 18% since reporting earnings last week.

The next major test highlighted by CNBC is SpaceX’s earnings report scheduled for Tuesday, followed two days later by the end of an insider lockup period. The outlet said options pricing implies a roughly 15% move in SpaceX shares after earnings, with implied volatility at 122, a level described as higher than nearly all S&P 500 companies. CNBC also reported that more than 900 million shares, representing 20% of eligible locked-up stock, could become available for trading.

The timing matters because earnings announcements often create uncertainty that fades afterward, but CNBC noted that SpaceX’s lockup may keep volatility high if insiders begin selling. Contracts expiring Aug. 7 were cited with implied volatility of 160, compared with 55 for Tesla, suggesting traders are pricing in an unusually large risk event around SpaceX.

CNBC said options activity still shows optimism among many SpaceX traders, with call volume exceeding put volume on Tuesday. However, the report also pointed to a split between smaller and larger traders, with bigger trades appearing more cautious. The development is significant because it combines pressure on two Musk-linked companies with a potentially large increase in tradable SpaceX shares.