Elon Musk's Tesla and SpaceX Have Shed $1.19 Trillion in Value Since June. Is This a Buying Opportunity?

Tesla has shed $1.19 trillion in combined market value with SpaceX since June, with TSLA down 20% and SpaceX down 40% in its private market valuation. The selloff comes as both companies funnel billions into AI initiatives—Tesla into its Optimus humanoid robot program and full self-driving technology, SpaceX into orbital data centers—requiring substantial capital expenditure and debt financing.

SpaceX faces an additional headwind as lockup period restrictions begin expiring, threatening to release insider shares into secondary markets and dilute pricing. The dual compression reflects investor concern over near-term burn rates against uncertain commercialization timelines for next-generation projects.

Tesla's 20% drawdown brings the stock closer to levels last seen before its 2023 rally, while SpaceX's 40% private-market decline marks one of the steepest corrections for a late-stage unicorn outside of a broader tech rout. Both companies remain unprofitable on their AI ventures, with no disclosed breakeven horizon.