Tesla Stock Is Down This Year, and SpaceX Is Volatile. Are Either Worth Owning Right Now?

Yahoo Finance ·

There is a particular kind of investor mistake that doesn't feel like a mistake while you're making it. You admire a company genuinely. You might like its engineering, its ambition, the degree to which it has embarrassed more complacent competitors, and that admiration quietly migrates into your portfolio. The two things feel related. But they aren't. Respecting what a company has built and believing in its stock price are epistemically distinct judgments, and conflating them is how intelligent people end up holding expensive stories instead of businesses. That distinction is worth keeping in mind as we examine where Tesla ( TSLA +1.38% ) and Space Exploration Technologies Corp ( SPCX +0.13% ) actually stand. As of June 2026, Tesla shares trade around $375, down approximately 16% year to date. Back in April, JPMorgan analyst Ryan Brinkman, following first-quarter delivery results, maintained an underweight rating with a $145 price target -- implying more than 60% downside from current levels -- citing a price-to-earnings (P/E) ratio north of 180x on what he characterized as shrinking fundamental earnings power. I personally like Brinkman's thesis.

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Summary: As of June 2026 TSLA shares trade around $375, roughly 16% below the start of the year. JPMorgan, citing Q1 delivery results, says the P/E exceeds 180x and kept an Underweight with a $145 target, warning of further downside. The author also supports the view of overvaluation and weakening earnings momentum. SPCX (=SpaceX) remains highly volatile and unlisted, creating significant liquidity and valuation uncertainty; in the short term, increased volatility could expand option and short-term trading opportunities. Overall, holding TSLA carries substantial valuation risk and is likely to have secondary spillover effects across related supply chain, battery, and autonomous driving sectors.

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