SpaceX, Tesla shares fall on data center, merger concerns after midterms
Shares of Elon Musk's SpaceX and Tesla fell sharply Thursday, extending losses as investors worried Democratic midterm wins could slow data center construction. The companies were on track to lose over $380 billion in market value this week. SpaceX, which gets over half its quarterly revenue from AI computing rentals, faces potential data center moratoriums in Texas after Democratic victories there. Goldman Sachs estimated such pauses could affect 45% of planned US data center capacity expansion. The political shift may also complicate a potential Tesla-SpaceX merger, with analysts citing a tougher regulatory path. Musk had backed Republicans in the midterms, and Democratic gains could bring increased scrutiny of his businesses.