Tesla and SpaceX lose $130 billion after Texas Democrats sweep elections

Tesla and SpaceX shares fell 3.3% and 3.8% on Wednesday, erasing nearly $130 billion in combined market value after Democratic victories in Texas raised political and regulatory risks for Elon Musk's companies. The Democratic sweep of Texas gubernatorial and Senate races, part of a broader party win of Congress, gives Musk's political opponents an easier path to obstruct his operations without a presidential veto. Musk, a prominent Republican donor who spent $205 million on Texas races, faces potential scrutiny of his AI projects and a planned Tesla-SpaceX tie-up. Musk joked on X about the outcome and hinted at relocating his businesses, though legal experts note halting operations would be difficult. The election result may accelerate a Tesla-SpaceX deal announcement before President Trump leaves office, as a Democratic Congress seated in January would increase scrutiny of such a merger.