Democratic victory strikes Musk: Tesla and SpaceX lost $456 billion in value in two days

Tesla and SpaceX shares plunged 9% and 11% respectively following the Democratic victory in the midterm elections, wiping out $456 billion from their combined market value in two days. Elon Musk lost $90 billion of his personal fortune.

Tesla and SpaceX shares fell 9% and 11% respectively on Thursday, following the sweeping Democratic victory in the midterm elections. Investors fear congressional investigations and tighter regulation of Elon Musk's companies. The declines erased about $456 billion from the combined market value of the two companies over the past two days. Musk's personal fortune lost $90 billion this week, dropping to under $800 billion. Musk, who was the largest donor to Republican candidates with contributions exceeding $470 billion, saw most of the candidates he supported lose. In Texas, where he moved his headquarters, a Democratic governor was elected and the Democratic candidate won the Senate. Analysts at Deutsche Bank estimated that SpaceX faces high hurdles. The governor-elect, Gina Hinojosa, pledged to limit the establishment of data centers, which could harm the companies' plans to build AI infrastructure and a chip factory in Texas. Regulatory scrutiny could thwart Musk's attempt to merge Tesla and SpaceX.