SpaceX and Tesla have erased $1.5 trillion in market cap since mid-June, with SpaceX down nearly 50% from its high and Tesla down 18% since earnings. SpaceX’s lockup period expires two days after Tuesday’s earnings report, releasing more than 900 million shares, or 20% of eligible locked-up stock, for trading. Options imply a 15% swing and volatility of 122 for SpaceX after earnings, higher than every S&P 500 company except SanDisk. Despite the decline, traders remain bullish with more calls than puts trading daily, though big traders are taking a more cautious approach.
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