Tesla and SpaceX have both fallen sharply from their recent highs. The drop has not only pushed below the trillionaire mark but has also triggered panic amonginvestors. Viram Shah, CEO and Founder of Vested Finance, weighs in on whether this is simply profit-booking or a deeper re-rating of AI and space-related valuations, and explains what Indian retail investors should do next.
Here’s a look at the numbers
- Tesla (TSLA) is trading around $393, down ~21% from its 52-week high of $498.83 (hit Dec 22, 2025)
- SpaceX (SPCX), which listed on Nasdaq on June 12, 2026 in the largest IPO in history, is down roughly 30% from its post-listing intraday high of $225.64 (June 16) to around $157-158 currently
- Musk’s net worth has fallen from a peak of $1.45 trillion shortly after the SpaceX IPO to below $1 trillion — meaning he’s no longer the world’s only trillionaire
What’s actually driving the selloff?
One is the actual businesses, and the other is the way the market is re-pricing a whole basket of AI-linked names right now, explains Shah and adds, “On the businesses, honestly not much broke.”
just posted its strongest Q2 deliveries in a while and the stock still fell about 8% that tells you the move isn’t really about cars. It’s about how much of that valuation rests on autonomy and robotaxi, which a delivery number can’t settle either way.
is a similar story. Starlink is profitable and growing, the launch business is setting records. And as expected the IPO drew significant retail interest globally, including from Indian investors accessing US markets. However, the stock later saw a pullback due to profit booking after a strong debut, broader tech-sector jitters over AI profitability timelines, high-profile short positions, and also the usual volatility that comes with newly listed companies with limited shares available for trading.
Is this is profit-booking or a genuine re-rating?
Probably both. You had a near-vertical run in SpaceX right after listing, and Tesla also had a strong 2025, so some investors are simply booking profits.
But, now a bigger shift is happening as market participant have started questioning about how they want to price these AI and space-related companies.This re-rating makes it difficult to predict where prices will eventually stabilise.
What Indian investors should do now?
It is better not to look at this as a “sell or stay” decision. “That’s market timing, and it’s usually the wrong lens,” says Shah.
Rather, investor should try to check whether their investment is the right size for how volatile these stocks can be, and for how long they plan to hold them.
“If you’re holding a five- or ten-year thesis on space and AI, a few weeks like this shouldn’t change much. If a position got too big on the way up, that’s worth looking at regardless of price.”
What should Indian retail investors keep in mind when investing in newly listed, high-valuation US stocks?
On the marquee IPOs specifically, a great company and a great entry price aren’t the same thing. Newly listed names, especially those with limited shares available and upcoming lock-in periods, can move violently in their first few quarters before they find a real level.
For Indian investors going global through the LRS route, the rule is the same as always: keep your position small enough that a weak quarter is just a small setback, not a major hit to your overall portfolio.