Tesla and SpaceX shares slide on election fallout for data centers and merger plans

Shares of Elon Musk's companies SpaceX and Tesla slumped on Thursday, extending losses, as investors worried Democratic wins in the US midterm elections could slow data center build-outs. Combined, the companies were on track to lose over $380 billion in market capitalization this week. Tesla shares fell over 11 percent, while SpaceX slid nearly 9 percent. Democrats won Texas races for Senate, governor, and attorney general, where both firms are headquartered. Goldman Sachs estimated Democratic gains could lead to short-term data center moratoria, affecting about 45 percent of planned US capacity expansion. The results could also complicate a potential Tesla-SpaceX merger, which Musk endorsed last month, with analysts citing a tougher regulatory roadmap. SpaceX relies on AI computing for over half its quarterly sales, and Tesla pitches storage systems to data center operators.