Share Declines Deepen Through Thursday
Tesla and SpaceX finished Thursday with approximately $456 billion erased from their combined market capitalization since Tuesday’s close, according to CNBC. By Thursday afternoon, SpaceX shares were down about 9% and Tesla shares about 11%, taking their aggregate losses above $420 billion before the final closing tally.
The selling came amid a wider retreat in technology stocks, making it difficult to isolate the election’s contribution to the losses. CNBC reported that investors were concerned about possible congressional investigations involving Elon Musk and stricter oversight of his companies after Democrats secured control of both chambers of Congress.
Election Setback Follows Heavy Republican Spending
Musk contributed more than $470 million to Republican candidates and causes during the midterms, making him the party’s largest donor in the election cycle, according to reporting first published by the Financial Times. Most of the candidates he supported nevertheless lost. Beyond the Democratic victories in the House and Senate, the results changed the political landscape in Texas, where Tesla and SpaceX are headquartered.
Democratic Senator-elect James Talarico defeated state Attorney General Ken Paxton, while Democratic Governor-elect Gina Hinojosa defeated Governor Greg Abbott. Both losing Republicans were longtime Musk allies. The market declines also reduced Musk’s personal fortune: Forbes estimated his wealth at below $800 billion, down about $90 billion over the past week, after it exceeded $1 trillion following SpaceX’s June initial public offering. He remained the world’s richest person.
Texas Computing Projects Face Policy Questions
The Texas results have particular relevance for the companies’ artificial intelligence infrastructure expansion. Tesla and SpaceX are planning Terafab in Grimes County, a large development intended to combine a data center with an extensive semiconductor manufacturing facility. Separately, SpaceX job listings describe plans for a supercomputer at Starbase, its Texas launch site and company town.
In a Wednesday research note, Deutsche Bank analysts highlighted Hinojosa’s campaign position on data centers. She advocated halting new approvals until lawmakers established stronger safeguards covering water consumption, electricity costs, local authority and incentives. She also criticized tax concessions for large facilities. Those positions create policy uncertainty for projects whose development depends on approvals and the rules governing construction and operation.
Analysts Flag Delays and Potential Higher Spending
Deutsche Bank said SpaceX could encounter additional obstacles in the changed political environment, while emphasizing that policy outcomes are difficult to predict. Its analysts identified possible delays to the company’s Texas computing capacity and said capital spending might have to rise to satisfy anticipated tighter requirements for data center development.
Those assessments describe risks rather than confirmed project disruptions. The source did not report an enacted moratorium, a revised construction timetable or a quantified increase in spending. The next questions for the infrastructure plans are how the incoming Texas administration translates its campaign priorities into policy and what protections the legislature ultimately adopts.
Starlink Records and Merger Ambitions Draw Attention
Potential federal scrutiny extends beyond infrastructure. CNN first reported, citing an aide to a Democratic senator, that Musk and SpaceX had been directed to retain records relating to restrictions on a military version of Starlink in Ukraine. CNBC’s account said those restrictions hindered Ukraine’s ability to defend itself against Russian attacks.
Regulatory attention could also complicate Musk’s proposed combination of SpaceX and Tesla, an idea he has promoted while acknowledging that shareholder approval would first be necessary. The source reported no completed merger agreement or regulatory decision. For investors, congressional oversight, Texas infrastructure policy and any formal merger proposal remain separate uncertainties alongside the broader technology-market weakness.
Source: CNBC