Elon Musk’s business empire faced fresh investor scrutiny after Democratic candidates secured major victories in Texas and across the United States, raising questions about the political and regulatory challenges facing his companies.
Shares of Tesla fell 3.3% on Wednesday, November 4, while SpaceX shares declined 3.8%. The combined losses wiped nearly $130 billion off the companies’ market value in a single trading session, according to the report.
The election outcome has added uncertainty for Musk, who has become one of the Republican Party’s prominent financial supporters. He reportedly contributed nearly $450 million to Republican campaigns, including $205 million towards Texas races, and urged his followers on X to vote against Democrats.
Texas has become a major base for Musk’s businesses, with both Tesla and SpaceX headquartered in the state. However, Governor-elect Gina Hinojosa campaigned partly against the unchecked expansion of data centres, an issue closely connected to the companies’ artificial intelligence ambitions.
Investors are also watching the potential Tesla-SpaceX combination, which remains at an exploratory stage. A Democratic-controlled Congress could increase regulatory scrutiny of a deal of this scale, potentially complicating Musk’s plans.
The political shift has also raised concerns about tighter oversight of AI development, technology companies and data-centre infrastructure. Meanwhile, Rivian and Lucid shares advanced as investors considered the possibility of more favourable environmental policies under Democratic leadership.
Despite the immediate market reaction, Tesla and SpaceX continue to face broader uncertainties, including high development spending and questions about the commercial timelines for projects involving robotaxis, robotics and space exploration.
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