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Tesla, SpaceX shares plunge 10% after US midterm elections; Musk loses $33B
Tesla and SpaceX shares fell sharply on Wednesday and Thursday following US midterm elections, cutting $33 billion from Elon Musk's wealth. The declines reflect investor concerns about political risks to Musk's Texas-based operations after Democratic electoral victories in the state, despite Musk spending $446 million to support Republican candidates.
Quick Facts
- Tesla shares fell 10% Thursday, following 3.3% drop Wednesday
- SpaceX shares declined 9.2% Thursday
- Musk's net worth fell $33 billion Wednesday
- SpaceX default protection costs hit record high
- Democratic candidates won key races in Texas
Shares in Elon Musk's Tesla and SpaceX tumbled sharply on Wednesday and Thursday following the US midterm elections, erasing $33 billion from Musk's net worth in a single day. Tesla fell as much as 10% on Thursday, extending a 3.3% drop Wednesday, while SpaceX declined 9.2% Thursday. For the year, Tesla shares are now down approximately 22%. The sell-off reflects investor concerns over political risks facing Musk's Texas-based companies after Democratic candidates won key races in the state.
Musk had spent at least $446 million supporting Republican candidates and groups ahead of the midterms, including approximately $224 million backing Republicans in Texas. Democratic victories in the state include James Talarico elected to the Senate and Gina Hinojosa as governor. Both Tesla and SpaceX maintain significant operations in Texas—Tesla's main US Gigafactory is located near Austin, SpaceX launches from its Starbase facility, and plans exist to build a Terafab chip factory in the region.
The political shift could have material consequences for Musk's businesses. Hinojosa has pledged an immediate moratorium on new data centers, and Democratic control of Congress may bring increased scrutiny of technology companies. The market impact extended beyond equity losses: SpaceX's cost to protect debt against default hit a record high Thursday, signaling investor concerns about the company's near-term risks.
Despite the losses, Musk's net worth remained approximately $865 billion as of Wednesday's close, according to Bloomberg's Billionaires Index—$490 billion ahead of Amazon founder Jeff Bezos. Musk responded to the election results and market decline with social media posts joking that his "election-interfering space lasers" had failed and suggesting SpaceX's plans to build data centers in orbit looked "pretty appealing" after the Democratic victories. Market analysts attributed the broader sell-off to post-midterm jitters and concerns that policy shifts could hinder Musk's expansion plans.
Why This Matters
The equity declines signal investor concern that Democratic electoral gains in Texas—where Tesla operates its largest US Gigafactory and SpaceX launches from Starbase—could result in policy shifts affecting expansion and operations. The rise in SpaceX's credit default swap spreads to record levels indicates financial markets are pricing near-term business risk. Observable effects include potential constraints on data center buildout (Texas governor-elect has pledged a moratorium) and increased regulatory scrutiny under Democratic-controlled Congress, which could affect capex timelines and permitting for both companies.
Timeline & Sources
Nov 5, 2026
WireUS midterm elections held; Democratic candidates win key races in Texas including Senate and governor races
Nov 5, 2026
WireTesla shares fall 3.3%, SpaceX shares fall 3%+ on Wednesday; Musk loses $33 billion in net worth
Nov 6, 2026
WireTesla shares fall further, reaching 10% decline Thursday; SpaceX shares decline 9.2%; SpaceX default protection costs hit record high
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