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Tesla and SpaceX lose $456bn in value amid post-election scrutiny fears
Developing story first seen 2 hours ago
The latest figures put Tesla and SpaceX’s combined market value losses at about $456 billion by Thursday’s close, after their shares fell sharply amid expectations of greater scrutiny following the US midterm elections. Investors are weighing the prospect of congressional probes and stricter regulation of Elon Musk’s companies.
Tesla shares fell about 11% and SpaceX shares about 9% on Thursday afternoon, alongside a wider technology sell-off. Democrats won control of both chambers of Congress, and most candidates backed by Musk, who contributed more than $470 million to Republican candidates and causes, lost their races. Analysts say proposed rules for data centres in Texas could delay or raise the cost of AI infrastructure projects, including a planned large facility; Musk’s wealth has fallen below $800 billion, though he remains the world’s richest person.
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In short
- Tesla and SpaceX lost about $456 billion in market value by Thursday’s close.
- Election results have raised investor concerns about scrutiny and regulation.
- Texas rules could affect the companies’ planned AI infrastructure projects.
How this story developed
- 31 minutes ago By Thursday’s close, the companies had lost about $456 billion in combined market value since Tuesday, while Elon Musk’s estimated fortune fell below $800 billion; Democrats had won both chambers of Congress and most candidates he backed had lost.
- 37 minutes ago Tesla and SpaceX shares slumped after the US midterm elections as investors anticipated congressional scrutiny and tighter regulation, with proposed Texas data centre rules threatening delays or higher costs for major projects.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Greater congressional scrutiny and tighter rules could protect the public where fast-growing technology projects affect energy use, data centres, competition or consumer interests. The election results may give lawmakers a stronger mandate to examine whether Musk’s political influence and companies’ commercial activities warrant closer oversight, even if that creates costs or delays for investors.
The case against
Investors can reasonably worry that investigations or new regulation may impose uncertainty, delay projects and raise costs before any wrongdoing or public harm has been established. They may also argue that predictable, narrowly tailored rules are preferable to politically driven scrutiny, especially when a wider technology sell-off may explain part of the share-price falls.
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Originally published by CNBC as “Elon Musk’s Tesla and SpaceX lose over $420 billion in combined market cap after midterms”.