Tesla and SpaceX Shares Plunge for Second Day, Wiping Out $370 Billion

Shares of Elon Musk's SpaceX and Tesla plunged for a second consecutive day on November 5, erasing nearly 60 trillion yen ($370 billion) in combined market value. The selloff was driven by concerns that Democratic victories in the U.S. midterm elections could slow data center construction. Tesla fell 10.8% and SpaceX dropped 9.1% on the day, bringing their two-day declines to 13.8% and 12.5%, respectively. SpaceX's closing price of $123.62 fell below its June IPO price of $135. Reuters reported that Democratic wins in Texas, where both companies are headquartered, raised fears of increased regulatory oversight. SpaceX has been developing AI computing resource rentals as a new revenue pillar, accounting for over half of Q3 sales. Goldman Sachs predicted Democratic victories could disrupt short-term data center construction, potentially affecting about 45% of planned U.S. data center capacity.