The Future Fund‘s Gary Black said Monday Tesla Inc (NASDAQ:TSLA) and Space Exploration Technologies Corp (NASDAQ:SPCX) investors were overlooking deteriorating earnings expectations and valuation metrics, while investor Ross Gerber said SpaceX could become a buying opportunity after its recent selloff.
Black Says Investors Ignore Valuation Math
Black said the only investors surprised by the recent declines in Tesla and SpaceX shares are those who “don’t do valuation math,” adding that Tesla cannot trade at 180x to 210x forward earnings while forward earnings estimates and growth rates continue to move lower.
The comments came after investor Randy Kirk said in an interview with Larry Goldberg that investors were surprised by the recent declines in both company shares.
According to a chart shared by Black on X, analysts have cut Tesla’s projected 2027 adjusted earnings per share by about 21% year-to-date and nearly 30% over the past 12 months, with the current consensus estimate standing at $2.37.
Gerber Sees SpaceX Becoming a Bargain
Gerber was more optimistic despite SpaceX’s continued decline below its $135 IPO price, saying investors who avoided the stock after its public debut had made the right decision.
“Stock markets find value over time,” Gerber said.
“At some point in the next year SpaceX might even be a bargain.”
SpaceX shares have remained under pressure ahead of the company’s Aug. 6 lock-up expiration, when as many as 911.5 million shares could become eligible for sale.
On Saturday, Gerber told investors not to “bet against” SpaceX despite valuation concerns, saying the company was “doing incredible things,” comparing its recent volatility to Tesla’s early days as a public company.
Lock-Up, Earnings Weigh on Shares
SpaceX shares have tumbled 51% from their post-IPO peak to a record low of $108.66.
The company is set to report its first earnings as a public company on Aug. 4. CEO Elon Musk has said the company will prioritize decisions that maximize returns over the next decade rather than any single quarter.
Tesla has fallen 29.41% year-to-date and 5.03% over the past year.
Price Action: SPCX closed 1.36% lower at $113.50 on Monday and slipped another 1.23% in after-hours trading. TSLA closed 1.22% lower at $309.22 before falling 0.36% after the bell.
Benzinga edge rankings indicate SPCX has a negative price trend across the short, medium, and long term.
TSLA has a Momentum score in the 12th percentile and a Growth score in the 36th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Samuel Boivin on Shutterstock.com
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