{"id":63564,"date":"2026-06-22T15:38:16","date_gmt":"2026-06-22T19:38:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/spacex-shares-plunge-13-as-tesla-faces-new-federal-safety-probe\/63564\/"},"modified":"2026-06-22T15:38:16","modified_gmt":"2026-06-22T19:38:16","slug":"spacex-shares-plunge-13-as-tesla-faces-new-federal-safety-probe","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/spacex-shares-plunge-13-as-tesla-faces-new-federal-safety-probe\/63564\/","title":{"rendered":"SpaceX Shares Plunge 13% as Tesla Faces New Federal Safety Probe"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>SpaceX shares plummeted 13% on Monday<\/strong>, falling below their first-day closing price as the post-IPO rally for Elon Musk\u2019s rocket company continues to unwind.<\/li>\n<li><strong>Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>) is under a new federal safety investigation<\/strong> by the NHTSA following a fatal crash in Texas where a Model 3 reportedly on Autopilot struck a home, killing a resident.<\/li>\n<li><strong>Paramount Skydance (<a href=\"\/stock\/PSKY\">PSKY<\/a>) established a standalone Industrial Relations division<\/strong>, appointing Nicole Lang and Sheldon Kasdan as co-heads to manage critical labor and union partnerships.<\/li>\n<li><strong>CFTC data reveals a surge in bearish sentiment for U.S. Treasuries<\/strong>, with speculators boosting net short positions across 2-year, 5-year, 10-year, and Ultrabond futures for the week ended June 16.<\/li>\n<li><strong>Former President Trump issued a &quot;complete and total endorsement&quot; for John James<\/strong> in the Michigan gubernatorial race, while Senate Majority Leader John Thune prepares for high-stakes GOP discussions on the SAVE America Act and Iran.<\/li>\n<\/ul>\n<h2>SpaceX Market Volatility and Tesla Safety Concerns<\/h2>\n<p><strong>SpaceX<\/strong> shares experienced a sharp <strong>13% decline<\/strong> on Monday, marking a significant reversal from the record-breaking momentum of its recent initial public offering. The sell-off pushed the company&#39;s valuation down to approximately <strong>$2.4 trillion<\/strong>, causing it to slip behind Amazon in total market capitalization. Analysts suggest the &quot;thin float&quot; of the stock, combined with new speculative instruments allowing traders to bet against the company, has accelerated the pullback from its post-IPO highs.<\/p>\n<p>Simultaneously, <strong>Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>)<\/strong> is facing renewed regulatory pressure as the <strong>National Highway Traffic Safety Administration (NHTSA)<\/strong> opened a probe into a fatal accident in Katy, Texas. A Model 3 vehicle reportedly veered off a residential road and crashed into a brick home, resulting in the death of a 76-year-old woman inside. The driver informed investigators that the vehicle&#39;s <strong>automated driving assistance system<\/strong> was engaged at the time of the impact, adding further scrutiny to Tesla&#39;s Autopilot and Full Self-Driving (FSD) technologies.<\/p>\n<h2>Paramount Restructures Labor Relations Amid Industry Shifts<\/h2>\n<p><strong>Paramount Skydance (<a href=\"\/stock\/PSKY\">PSKY<\/a>)<\/strong> announced the creation of a new, standalone <strong>Industrial Relations division<\/strong> to streamline its engagement with Hollywood guilds and unions. <strong>Nicole Lang<\/strong> and <strong>Sheldon Kasdan<\/strong> have been elevated to Executive Vice Presidents and Co-Heads of the division, reporting directly to Chief Legal Officer Makan Delrahim. This strategic move is intended to reinforce the company&#39;s commitment to &quot;strong, constructive partnerships&quot; following a period of intense labor negotiations within the entertainment industry.<\/p>\n<h2>CFTC Positioning: Bearish Bets on Treasuries and Yen<\/h2>\n<p>The latest <strong>Commitments of Traders (COT)<\/strong> report from the <strong>CFTC<\/strong> shows that speculators are increasingly pessimistic about U.S. government debt. Net short positions rose across nearly all major Treasury maturities, including <strong>2-year, 5-year, and 10-year notes<\/strong>, as well as <strong>Ultrabond futures<\/strong>. The only exception was a slight easing of shorts in long-bond futures for the week ended June 16.<\/p>\n<p>In the currency markets, the <strong>Japanese Yen<\/strong> remains heavily shorted with <strong>150,132 contracts<\/strong>, even as the Bank of Japan recently raised its policy rate to <strong>1.0%<\/strong>. Meanwhile, the <strong>Euro<\/strong> maintained a net long position of <strong>34,353 contracts<\/strong>, and <strong>Bitcoin<\/strong> speculators held a net long of <strong>3,475 contracts<\/strong> as the digital asset continues to trade significantly below its all-time highs.<\/p>\n<h2>Political Developments: Trump Endorsements and Senate Strategy<\/h2>\n<p>On the political front, <strong>Donald Trump<\/strong> utilized Truth Social to give a &quot;complete and total endorsement&quot; to <strong>John James<\/strong> for Michigan Governor, citing his record on job creation and border security. In Washington, Senate Majority Leader <strong>John Thune<\/strong> indicated that a GOP lunch with Trump this week will likely cover the <strong>SAVE America Act<\/strong> and ongoing tensions regarding the war in <strong>Iran<\/strong>.<\/p>\n<p>Internationally, tensions are peaking in <strong>Bolivia<\/strong>, where security forces are preparing to enter the <strong>Chapare region<\/strong>. Former President <strong>Evo Morales<\/strong> has been sheltered there by thousands of supporters since October 2024 to evade arrest, as the current administration under <strong>Rodrigo Paz<\/strong> declares a state of emergency to quell widespread anti-government protests.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways SpaceX shares plummeted 13% on Monday, falling below their first-day closing price as the post-IPO rally for Elon 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