Tesla and SpaceX have lost about $456 billion in combined market value in the two days since Tuesday’s midterm elections, as investors weighed what a Democratic-controlled Congress could mean for Elon Musk’s companies.
Tesla shares fell about 11 per cent on Thursday, closing at $343.69, while SpaceX shares dropped about 9 per cent to $123.62, according to CNBC. The two companies had already shed more than $420 billion during Thursday’s trading session before the final closing tally pushed the figure higher. Other tallies based on closing prices put the combined two-day loss at about $424 billion.
Democrats won control of both the House and the Senate on Tuesday, and the market reaction was swift. Investors are concerned that the new Congress could open investigations into Musk’s work with the Department of Government Efficiency and into government contracts awarded to SpaceX and his other companies, CNBC reported. Tighter regulation and stricter oversight of data-centre construction were also cited as risks.
Texas, where both companies are headquartered, delivered its own shock. Democratic senator-elect James Talarico defeated Republican Attorney General Ken Paxton, while Democratic governor-elect Gina Hinojosa beat Governor Greg Abbott. The two companies are building artificial intelligence infrastructure in the state, including a large data-centre and semiconductor project in Grimes County.
Deutsche Bank analysts wrote on Wednesday that SpaceX could face “incremental headwinds” in the new political environment, and that tighter data-centre rules could delay projects or increase capital expenditure.
Musk was the largest donor to Republican candidates and causes during the midterm cycle, contributing more than $470 million, the Financial Times first reported. Most of the candidates he backed lost. Forbes reported that his wealth, which passed $1 trillion after SpaceX’s initial public offering in June, has now fallen below $800 billion, down about $90 billion over the past week.
The selling came amid a broader retreat in technology stocks, making it difficult to isolate the election’s contribution to the losses. For now, the losses are paper ones, and both companies remain among the most valuable in the world. Neither Tesla nor SpaceX has publicly commented on the sell-off.
Sources: CNBC (via TradingView) https://www.tradingview.com/news/binance_news:80a5d5cd5094b:0-elon-musk-s-tesla-and-spacex-lose-over-420-billion-in-combined-market-cap-after-midterms/ ; Newsmax https://www.newsmax.com/newsfront/spacex-tesla-gop-losses/2026/11/06/id/1275357 ; MLQ.ai https://mlq.ai/news/tesla-and-spacex-lost-about-425-billion-in-two-day-market-cap-slide-after-democrats-midterm-gains/
