Market losses for Tesla and SpaceX diverged from broader economic gains after Democrats seized control of both houses of Congress. Musk's unprecedented political financing, tracked at $474 million by The New York Times, failed to prevent major conservative losses at both the national and state levels. The newly empowered Democratic majorities are now poised to escalate oversight of federal subsidies, contract awards, and infrastructure developments crucial to Musk's operational expansion.
Key points
Democratic control of Congress will likely intensify political heat and scrutiny over gov…: Democratic control of Congress will likely intensify political heat and scrutiny over government contracts awarded to Musk's companies.
Regulatory resistance and local opposition concerning electricity expenses threaten to sl…: Regulatory resistance and local opposition concerning electricity expenses threaten to slow SpaceX's data-centre project approvals.
Lawmakers are anticipated to reopen inquiries into SpaceX's satellite restrictions in Ukr…: Lawmakers are anticipated to reopen inquiries into SpaceX's satellite restrictions in Ukraine and federal workforce cuts linked to DOGE.
Sources checked by our analysis pipeline: 1
Elon Musk poured nearly half a billion dollars into the US midterm elections, but lost the gamble. As Democrats seized control of both chambers of Congress and Gina Hinojosa defeated Greg Abbott in the Texas governor's race, shares of Musk-owned companies came under pressure.
Shares of Musk-owned companies came under pressure, with SpaceX falling 3.8% in premarket trading and Tesla slipping 3.6%. Both stocks underperformed the broader market.
The decline came even as US equities rallied following the midterm elections. The S&P 500 jumped 1.6%, gaining 119.7 points to close at 7,688.62. The Nasdaq Composite added 364.50 points, or 1.4%, to 25,736.51, while the Dow Jones Industrial Average surged 1,569.40 points, or 3%, to 53,356.12. The Dow rose more than 1,500 points during the session.
US stocks have historically tended to gain following midterm elections, regardless of which party wins. However, Musk's businesses moved in the opposite direction as the election results dealt a blow to the Republicans and US President Donald Trump, a close ally whom the billionaire helped elect.
The setback is particularly significant given Musk's business interests…
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