Tesla and SpaceX shares slide on US midterm election results

thestar.com.my —

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


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