Elon Musk's Tesla and SpaceX Have Shed $1.19 Trillion in Value Since June. Is This a Buying Opportunity?
2026-08-05 14:20
•Patrick Sanders •The Motley Fool
•••••••• •••••• Axe Cap view
Tesla and SpaceX: Ambition or Overreach?
Tesla and SpaceX have massively lost value amid heavy spending on AI and space projects—should South African investors buy the dip?
Tesla's 20% drop and SpaceX's 40% slide since June aren’t just market reactions; they reflect deep questions about cash burn and project timelines. Tesla is doubling down on full self-driving and robotics, but commercial viability is far from certain and regulatory hurdles remain steep. SpaceX faces a share overhang from lockup expirations that could push prices lower, alongside massive future cash needs. For South African investors, the critical angle is the rand's reaction to broader risk appetite: these declines coincide with USD/ZAR strengthening, which could pressure rand-earnings sensitive sectors like Naspers and Prosus—both with tech exposure linked to global growth narratives. The temptation to buy Tesla low is understandable but patience is essential; these are long shots hinging on successful product rollouts years down the line. If the rand weakens or global liquidity tightens further, these tech bets become even riskier. this is just our opinion and not financial advice
Avoid direct Tesla or SpaceX exposure for now and watch USD/ZAR closely. If the rand stabilizes or strengthens, selectively trim tech-heavy counters like Naspers due to their global sensitivity.
- USD/ZAR
- Naspers
- Delayed or failed tech commercialization at Tesla
- SpaceX share supply flooding dragging prices lower
- Rand volatility worsening earnings pressure on SA tech stocks
6/10
Tesla and SpaceX have lost a combined $1.19 trillion in market value since June, with Tesla down 20% and SpaceX down 40%. Both companies are heavily investing in ambitious AI projects—Tesla in Optimus robots and full self-driving, SpaceX in orbital data centers—requiring billions in spending and debt. SpaceX faces additional pressure as lockup period restrictions begin expiring, potentially flooding the market with shares. The article suggests these declines may present buying opportunities for long-term investors willing to tolerate near-term volatility.
Our take is based on reporting first published by The Motley Fool.