The selloff accelerated Thursday afternoon as Tesla and SpaceX shares dropped roughly 9% and 11% respectively. Federal authorities have directed SpaceX and Musk to preserve records concerning restrictions placed on Ukraine's military access to Starlink satellite internet services. At the state level, Texas Governor-elect Gina Hinojosa's platform to pause data center approvals threatens the timeline and budget for the companies' joint "Terafab" facility in Grimes County. These mounting regulatory pressures also jeopardize Musk's proposed merger between his automotive and aerospace ventures.
Key points
Democratic majorities in the House and Senate heighten the risk of new Congressional inqu…: Democratic majorities in the House and Senate heighten the risk of new Congressional inquiries and increased federal oversight for Musk's enterprises.
Major Texas infrastructure projects, including the joint Terafab semiconductor and data f…: Major Texas infrastructure projects, including the joint Terafab semiconductor and data facility, face potential delays under newly elected state leadership.
Mounting political and regulatory headwinds could ultimately disrupt Elon Musk's conceptu…: Mounting political and regulatory headwinds could ultimately disrupt Elon Musk's conceptual proposal to merge Tesla and SpaceX into a single entity.
Sources checked by our analysis pipeline: 1
Tesla and SpaceX shares declined by about 9% and 11% respectively on Thursday afternoon with investors concerned that Elon Musk, who is CEO of both companies, could face new Congressional probes, and his companies could face stricter regulation following U.S. mid-term elections.
The declines, which correlated with a broader tech selloff, brought aggregate market cap losses for SpaceX and Tesla to over $420 billion since Tuesday's close.
Musk's wealth, which had topped $1 trillion after SpaceX's IPO in June, is now down below $800 billion, having dropped about $90 billion in the past week, according to Forbes. He is still the richest man in the world.
Musk was the biggest donor to GOP candidates and causes in the mid-terms, with his financial contributions exceeding $470 million, the FT first reported.
Despite his bolstering the GOP war chest, most of the candidates Musk backed lost their races.
Dems won control of both the House and Senate. And in Texas, where both Tesla and SpaceX are headquartered, Democrats James Talarico (Sen. elect) and Gina Hinojosa (Gov. elect) beat long-time Musk allies, Ken…
Facing an unsustainable economic model, the pioneering digital publication is ceasing editorial operations after three decades. Current owner Find.co, which acquired the site in 2023, is closing the magazine amid industrywide pressures tied to artificial intelligence tools and declining search referral traffic. The decision brings an end to one of the earliest trailblazers of independent online journalism.
Australian airline Qantas expects to face increased fuel costs during the first half of fiscal year 2027. The carrier has not yet provided further details regarding the projected financial impact or the specific drivers behind the anticipated rise in expenses.
Mounting subsidised Chinese exports have driven the European trade deficit to 1 billion euros daily, triggering widespread manufacturing closures. Experts warn that industrial decline in major economies like Germany threatens to spark social unrest and accelerate the rise of far-right political movements. Consequently, European leaders are preparing aggressive defensive trade mechanisms to protect vulnerable domestic markets from foreign distortions.