Elon Musk stocks take $1.5 trillion hit with fresh test in SpaceX lockup ahead

Skip NavigationMarketsPre-MarketsU.S. MarketsEurope MarketsChina MarketsAsia MarketsWorld MarketsCurrenciesPrediction MarketsCryptocurrencyFutures & CommoditiesBondsFunds & ETFsBusinessEconomyFinanceHealth & ScienceMediaReal EstateEnergyClimateTransportationInvestigationsIndustrialsRetailWealthSportsLifeSmall BusinessInvestingPersonal FinanceFintechFinancial AdvisorsOptions ActionETF StreetBuffett ArchiveEarningsTrader TalkTechCybersecurityAIEnterpriseInternetMediaMobileSocial MediaCNBC Disruptor 50Tech GuidePoliticsWhite HousePolicyDefenseCongressExpanding OpportunityEurope PoliticsChina PoliticsAsia PoliticsWorld PoliticsVideoLatest VideoFull EpisodesLivestreamTop VideoLive AudioEurope TVAsia TVCNBC PodcastsCEO InterviewsDigital OriginalsWatchlistInvesting ClubTrust PortfolioAnalysisTrade AlertsMeeting VideosHomestretchJim's ColumnsEducationSubscribePROPro NewsJosh BrownMike SantoliCalls of the DayMy PortfolioLivestreamFull EpisodesStock ScreenerMarket ForecastOptions InvestingChart InvestingSubscribeLivestreamMenuMake ItselectUSAINTLLivestreamSearch quotes, news & videosLivestreamWatchlistSIGN INCreate free accountMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting ClubPROLivestreamMenu (function() { const userMembershipOnLastVisit = localStorage.getItem("cnbcMeta__cachedUserMembership"); if (!userMembershipOnLastVisit) { // If no user membership is stored, user is likely not logged in. // These users will typically see the banner. return; } const { isPro, isInvestingClubUser } = JSON.parse(userMembershipOnLastVisit); if (!(isPro || isInvestingClubUser)) { // We’re rendering the top banner for users who are not pro or investing club members. return; } // Hide the banner for pro and investing club users. const style = document.createElement("style"); style.id = "top-banner-placeholder-style"; style.innerHTML = "[data-top-banner-placeholder] { display: none; }"; document.head.appendChild(style); })() Options ActionOptions ActionElon Musk stocks take $1.5 trillion hit with fresh test in SpaceX lockup aheadPublished Tue, Jul 28 20262:56 PM EDTOliver Renick@OJRenickWATCH LIVEIn this articleSPCXTSLAFollow your favorite stocksCREATE FREE ACCOUNTElon Musk arrives at the U.S. District Court in Oakland, Calif., Tuesday, April 28, 2026.Godofredo A. Vásquez | APIt's been a rough month for Elon Musk, if there is such a thing for the world's richest man.SpaceX and Tesla have erased a cumulative $1.5 trillion in market cap since mid-June, after an almost 50% sell-off in SpaceX since its high and an 18% drop in Tesla since earnings last week.It might get even crazier next week, based on options pricing around SpaceX's earnings report on Tuesday, and the end of the lockup period for SpaceX insiders two days after.Options prices are implying a 15% swing in SpaceX after earnings, with implied volatility of 122 in the stock – higher than every company in the S&P 500 other than SanDisk, which dropped 16% on Tuesday. Earnings also trigger the company's unique lock-up period, which allows insiders to begin selling shares earlier than the typical 180-day period. That puts a total of more than 900 million shares, or 20% of their eligible locked-up stock, on the table for trading.Stock Chart IconStock chart iconTSLA, SPCX since mid-JuneThe early lockup two days after earnings presents a tricky setup for options traders, who can usually count on a stock's implied volatility falling after earnings. Earnings present predictable risk for stockholders who often have to hedge their positions, and once that risk passes — even if the stock crashes, volatility usually declines.For SpaceX, traders must ask which presents more risk to the stock — its first earnings, or the lockup period? If the lockup period leads to insider