SpaceX and Tesla shares fell about 9% and 11%, respectively, on Thursday and Friday, as investors worried Elon Musk could face new congressional investigations and stricter regulation after the U.S. midterm elections.
The declines, which came amid a broader tech sell-off, pushed combined market cap losses for SpaceX and Tesla to more than $420 billion since Tuesday’s close.
The share slump follows Democrats’ ‘win’ of both the House and Senate, and in Texas, where both Tesla and SpaceX are headquartered,
Texas Gov.-elect Hinojosa made data centers a central campaign issue, calling for “a moratorium on new approvals until the legislature passes stronger protections on water use, electricity costs, local control, and incentives,” and criticizing tax breaks for large facilities.
Tesla and SpaceX are both expanding their AI infrastructure in Texas and plan to build Terafab, a massive facility in Grimes County that will feature a data center and a sprawling semiconductor factory.
SpaceX also plans to build a “supercomputer” at its Starbase launch facility and company town in Texas.
Musk was the biggest donor to GOP candidates and causes in the midterms, with his financial contributions exceeding $470 million.
According to Forbes, Musk’s wealth, which exceeded $1 trillion after SpaceX’s initial public offering in June, has since fallen below $800 billion. It dropped by about $90 billion over the past week. He remains the world’s richest man.
By CEO NA Editorial Staff
