Elon Musk’s Tesla and SpaceX shares plummet after Democrats gain control of Congress following midterm elections
Elon Musk invested nearly $500 million in Republican midterm campaigns, particularly in Texas.
Following Democratic victories, SpaceX and Tesla, both led by Musk, saw significant stock declines.
Tesla dropped over 2%, while SpaceX decreased nearly 3%, contrasting with other tech stock upticks.
Explorations of a SpaceX-Tesla merger might face difficulties under a Democrat-led Congress investigating Musk.
Guess my election-interfering space lasers didn’t work this time 🤷♂️
— Elon Musk (@elonmusk) November 4, 2026
Political impact
Investigations could affect SpaceX’s Starlink plans, which Qualcomm is supporting with new technology.
Musk spent over $474 million in the U.S. elections, heavily backing losing Texas Republican Ken Paxton.
Both companies are expanding in Texas, despite potential challenges from newly elected Democrats.
Gina Hinojosa, the new Democratic governor, aims to restrict data center development, affecting Tesla.
Musk chose Texas for its business-friendly laws, which now face changes with the Democratic leadership.
Investments in Texas include a planned $100 billion chip plant, potentially subjected to new scrutiny.
Musk’s political spending is minor relative to his $898 billion net worth.
Musk joked about election outcomes and floated ideas about SpaceX ventures on social media post-elections.
He deleted some social media posts urging followers to support Republicans.
