Tesla, SpaceX fall from record highs, Elon Musk lose trillionaire status: Profit-booking or re-rating of AI pricing? | Mint

Tesla and SpaceX have both seen significant declines, impacting Elon Musk's net worth and triggering investor panic. CEO Viram Shah discusses if this is profit-booking or a deeper market re-rating, advising Indian retail investors to assess their positions and remain cautious amid volatility.

Tesla and SpaceX have both fallen sharply from their recent highs. The drop has not only pushed Elon Musk 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.

Tesla 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.

SpaceX 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.

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.

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."

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.