Elon Musk’s Tesla and SpaceX lose over $420 billion in combined market cap after midterms

Tesla and SpaceX shares fell sharply after the US midterm elections, as investors weighed the prospect of congressional investigations and tighter regulation of Elon Musk’s companies. The losses matter because both firms have major projects in Texas that could face added costs or delays under stricter rules for data centres.

By Thursday’s close, the companies had lost about $456 billion in combined market value since Tuesday’s close, after shares fell roughly 11% for Tesla and 9% for SpaceX during the afternoon. Musk had donated more than $470 million to Republican candidates and causes, but most of those he backed lost, and Democrats won control of both chambers of Congress. His estimated fortune fell below $800 billion from more than $1 trillion after SpaceX’s June IPO, while he remained the world’s richest person.