Tesla and SpaceX shares drop after Democratic Congress win

Tesla and SpaceX shares fell sharply in pre-market trading Wednesday after Democrats won control of Congress, raising investor concerns about the future of Elon Musk's major holdings. Tesla dropped about 5% while SpaceX fell 6.9%, contrasting with slight gains in broader market futures. Musk, the world's richest person, invested nearly $450 million in Republican campaigns and urged his 240 million Twitter followers to vote against Democrats. A Democratic victory could lead to stricter AI regulations and create uncertainty about a potential Tesla-SpaceX merger, which faces regulatory scrutiny. The Democratic win in Texas, where both companies are headquartered, was a particular blow. Analysts noted Democrats could slow a merger, though they cannot block it alone. Musk joked on X that his "space lasers" to interfere with elections did not work this time.