SpaceX Crash Is About To Get A Lot Worse?
In a Nutshell
Markets are reversing after an initial rally on Iran news, with SpaceX dropping nearly 10% and losing $250 billion in market cap. The stock's extreme valuation (negative 235x P/E, $8.6B net loss on $19B revenue) faces further downside risk if it breaks below $160. Speculative assets like SpaceX and Rocket Lab are vulnerable to sentiment shifts and uncertainty, requiring strict risk management and profit-taking discipline.
These notes were generated by AI and may contain inaccuracies.
Markets opened strongly on Monday, pushing up to highs of 7:45 based on news that JD Vance announced ongoing talks with Iran in Switzerland. The next 60 days of plans regarding Iran were outlined, showing what was described as great progress.
Markets began to pull back and are slightly in the red, down about half a percent after being up nearly 1% at the peak. Uncertainty is beginning to present itself in the market.
Markets are elevated and at overbought levels. Markets are described as incredibly irrational, looking for any reason to continue ticking higher. A single tweet or update from Trump could spark recovery even if not true. Nothing announced today was new information not already factored in on Thursday. Markets pushed higher based on excitement that the deal is not falling apart.
Markets are pulling back, and the recommendation is to make money shorting. Take profits when it makes sense and do not carry positions longer than appropriate. Markets are testing oversold levels with some big losers on the day.
SpaceX is down 9 to almost 10% on the day. Over $500 billion has been wiped from the market in the first 20 minutes of the sell-off. SpaceX lost 10% of its value, dropping from a $2.4 trillion market cap to $2.3 trillion, representing a $250 billion loss in market cap value.
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