Musk's $500M midterm bet backfires as Tesla and SpaceX stocks fall

Elon Musk's nearly $500 million investment in the 2026 US midterm elections backfired as Democrats won control of both chambers of Congress, causing Tesla and SpaceX stocks to fall in premarket trading. Tesla slipped 3.6% and SpaceX dropped 3.8%, underperforming a broader market rally where the S&P 500 rose 1.6% and the Dow surged 3%. Musk contributed $474 million to Republican candidates, including $224 million in Texas, where his companies are based. Democratic control could slow approvals for SpaceX's data-centre projects and increase scrutiny of government contracts. Musk's spending flowed through PACs, including $216 million to America PAC and $168 million to the Senate Leadership Fund, making him the election's largest donor.