The two-day downturn erased roughly $189 billion from Elon Musk's personal fortune as his major companies faced sharp multi-day declines. Investors grew wary of stricter oversight on artificial intelligence infrastructure and possible roadblocks to a merger between the electric vehicle maker and aerospace firm. Meanwhile, alternative electric vehicle manufacturers Rivian and Lucid saw their share prices rise as markets anticipated broader federal support for the energy transition under Democratic leadership.
Key points
Heightened regulatory scrutiny over artificial intelligence data centers threatens the op…: Heightened regulatory scrutiny over artificial intelligence data centers threatens the operational advantages Musk previously secured in Texas.
A newly Democratic-controlled Congress creates immediate legislative obstacles for a pote…: A newly Democratic-controlled Congress creates immediate legislative obstacles for a potential corporate merger between Tesla and SpaceX.
Competing electric vehicle manufacturers Rivian and Lucid gained market ground as investo…: Competing electric vehicle manufacturers Rivian and Lucid gained market ground as investors anticipated favorable federal clean energy transition policies.
Sources checked by our analysis pipeline: 1
The midterm elections have dealt a major blow to Donald Trump and his Republican Party, as well as to one of his biggest backers, entrepreneur Elon Musk. The two major companies controlled by Musk—Tesla and SpaceX—have suffered a sharp stock market correction following the Democrats' unexpected victory in Texas and their majority in the U.S. Congress.
Tesla shares fell 3.3% on Wednesday, and on Thursday the decline accelerated, dropping another 10.77%. SpaceX shares fell 3.8% on the first day and another 9% on Thursday. In total, the market value loss for the two companies is approaching $469 billion, or about €417 billion at the current exchange rate. On Wednesday, the depreciation amounted to €110 billion.
Given that Elon Musk controls 35% of SpaceX and 11% of Tesla, the loss in value of his personal wealth is around $189 billion (€170 billion).
Markets have interpreted the election results as an increase in regulatory risks for the business empire of the South African tycoon, one of the main funders of the Republican Party in the midterm campaign .
Robust domestic earnings and shifting geopolitical dynamics following the US midterms have triggered a strong rally in Indian equity markets. Lower crude oil prices have eased inflation concerns for the import-dependent economy, while strong foreign institutional buying has bolstered market performance despite an international slump in technology shares.
Global portfolio managers are rotating capital into traditional sectors like financial services, consumption, and industrials to escape technology volatility in export-heavy Asian and U.S. markets. This shift is supported by resilient domestic demand, falling oil costs, and lower Treasury yields that strengthen local balance sheets. The massive reallocation could generate historic capital injections if funds fully rebalance their regional benchmarks.
Investor anxiety over potential policy disruptions in Washington quickly cascaded into major East Asian financial hubs, triggering a rapid market-wide retreat. Mounting concerns that American lawmakers might stall critical infrastructure projects directly pressured regional chipmakers and equipment suppliers. As uncertainty mounted, major equity benchmarks in Taipei, Seoul, and Tokyo recorded dramatic declines in rapid succession.