Retail investors are facing losses after sharp declines in Tesla and SpaceX shares. The fall has affected global investors, including Indians who bought US stocks through international investing platforms.
Tesla is trading near $393, about 21% below its 52-week high of $498.83. SpaceX has fallen about 30% from its post-listing intraday high of $225.64 to around $157–158. The company listed on Nasdaq on June 12 after pricing its IPO at $135 and opening at $150.
The correction has also reduced Elon Musk’s paper wealth. His net worth had briefly risen after the SpaceX listing but later dropped below the trillion-dollar mark as Tesla and SpaceX weakened. For retail investors, the focus has shifted from Musk’s wealth to their own exposure in two volatile stocks.
Tesla’s decline came even after the company reported strong second-quarter delivery numbers. This shows that investors are looking beyond vehicle sales. The market is also weighing Tesla’s future plans in autonomy, robotaxis and AI-linked businesses.
SpaceX faces a different issue. Its business around Starlink, rocket launches and space infrastructure has drawn investor interest. However, the stock rose quickly after its listing. A limited public float has also made price swings sharper.
The correction has already led to selling by some investors. Tesla has appeared among the most sold stocks on Vested Finance, according to information shared by the platform. SpaceX also attracted strong retail demand after its IPO, including from Indians investing under the Liberalised Remittance Scheme.
Viram Shah, founder and CEO of Vested Finance, said the selloff reflects both business expectations and wider market pricing. “One is the actual businesses, and the other is the way the market’s re-pricing a whole basket of AI-linked names right now,” he said.
Shah said Tesla’s recent stock move shows that the market is not only focused on cars. “Tesla just posted its strongest Q2 deliveries in a while, and the stock still fell. That tells you the move isn’t really about cars,” he said.
He added that investors are now asking how much of Tesla’s valuation should depend on autonomy and robotaxi plans. These businesses may take time to prove, and delivery numbers alone may not answer those questions.
Meanwhile, SpaceX has faced pressure despite strong interest in its core business. “Starlink’s profitable and growing, the launch business is setting records; what’s moving the stock is a very thin float and a premium valuation, so any selling gets magnified,” Shah said.
The broader market mood has also turned cautious toward AI-linked stocks. Investor Michael Burry, known for his bet before the 2008 housing crash, has disclosed bearish positions against Tesla and other AI-related names. That has added concern that some technology shares may have moved ahead of earnings support.
Shah said the current fall may be both profit-booking and a market re-rating. “You had a near-vertical run in SpaceX right after listing and a strong 2025 in Tesla, so some of this is just gains being taken,” he said. “But underneath it, the market’s asking a harder question about how it wants to price these AI and space bets, and that’s the re-rating part.”
For Indian investors, experts say the key step is to review allocation instead of reacting to price moves alone. Selling only during a fall can lock in losses. Buying more since the stock is available at a lower price can raise risk.
High-growth stocks such as Tesla and SpaceX can move sharply. A large part of their valuation depends on future businesses. For Tesla, that includes autonomy and robotaxis. For SpaceX, it includes Starlink growth, launch services and future space-linked markets.
Investors also need to check whether one or two US stocks have become too large in their portfolio. A long-term investor may view short-term volatility differently from someone with a shorter time horizon. However, a large position can increase risk even when the company’s business remains strong.
“A great company and a great entry price aren't the same thing,” Shah said. “For Indian investors going global through the LRS route, the discipline’s the same as always: size it so a rough quarter is a nuance in the portfolio, not the whole story.”
Newly listed stocks can also stay unstable for several quarters. SpaceX still has a limited public float. Future lock-up expiries may add more shares to the market, which can affect prices.
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