Tesla and SpaceX shares slide 15% after Democratic midterm sweep

Shares of Elon Musk's companies Tesla and SpaceX have fallen about 15% since Tuesday's close following the Democratic sweep in the midterm elections, raising investor concerns about a potential merger between the two firms. The election outcome has cast doubt on the Tesla-SpaceX merger, a key bull catalyst this year, with analysts citing increased regulatory scrutiny, high interest rates, and volatility as obstacles. Democrats could also examine Musk's throttling of Starlink service to Ukraine. Broader market selling has compounded losses, with the Nasdaq 100 dropping 6% into a correction. Democratic wins in data center hubs like Texas and Georgia may lead to tighter oversight of the AI infrastructure sector, a major growth area for SpaceX.