# More trouble ahead for SpaceX and Tesla, veteran fund manager warns George Noble predicts further declines for both companies' stocks. - **Source:** [Business Insider](https://www.businessinsider.com) - **Published:** 2026-08-16 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/0f25b638-9c63-40fc-8d34-f42acac27769 ## SpaceX shares struggle post-IPO SpaceX shares have faced challenges since their IPO in June. George Noble, former manager of Fidelity Overseas Fund, argues the stock should be trading much lower. He criticizes SpaceX's fast-track inclusion in the Nasdaq 100, which forced passive index funds to buy the overvalued stock. Noble believes this has created market imbalances and undue risk for investors. ## Short position recommendation for Tesla and SpaceX George Noble sees Tesla and SpaceX as among the best short opportunities in the market. He claims both companies are overvalued due to social media hype and face tough macroeconomic conditions. Noble points to Tesla's Q2 earnings miss as evidence that the 'Musk effect' on investors is fading, potentially leading to further stock declines for both companies. ## Controversy over SpaceX's Nasdaq 100 inclusion Noble criticizes SpaceX's rapid inclusion in the Nasdaq 100, arguing it harms passive investors. 'Grandma's 401k now owns a $2 trillion company at 90 times revenues. That's outrageous,' he states. Noble warns such fast-track inclusions create market distortions and expose investors to unnecessary risks, particularly in overvalued stocks like SpaceX. ## Musk's influence on investors wanes Noble suggests Elon Musk's sway over investors is diminishing. Tesla's flat performance over five years and declining earnings indicate the 'Elon premium' may be ending. Noble predicts this trend will continue, putting downward pressure on both Tesla and SpaceX shares as investor sentiment shifts. ## Projected declines for SpaceX and Tesla Noble believes both SpaceX and Tesla shares are significantly overvalued. He predicts Tesla could fall 91% to $30 per share, while SpaceX might drop 79% to the same level. Noble expects these declines could materialize by year-end, citing overvaluation and challenging macroeconomic conditions as key drivers. ## Retail investor interest shifting Noble observes changing sentiment among retail investors toward Tesla and SpaceX. Reduced social media hype and macroeconomic uncertainty are causing investors to pull back. He warns this trend could accelerate if market conditions worsen, potentially leading to steeper declines in both stocks. ## SpaceX's post-IPO performance SpaceX shares have underperformed since their IPO. Noble predicts the stock could fall 50% by year-end due to overvaluation and tough macroeconomic conditions. He cautions investors to be wary of these risks, particularly given the stock's rapid inclusion in major indexes and subsequent passive fund buying. ## Long-term implications Noble's analysis raises concerns about Tesla and SpaceX's long-term prospects. Overvaluation and declining investor confidence could lead to further share price declines. This poses significant risks, particularly for passive investors. Noble advises caution, suggesting investors reconsider their exposure to these high-risk stocks. ## Sources covering this story - https://www.businessinsider.com/spacex-tesla-stock-short-hedge-fund-elon-musk-tsla-spcx-2026-8 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._