Tesla stock plunges 11% as Texas Democratic wins spook investors

Tesla's stock plunged over 11% in 48 hours, with Elon Musk's companies losing more than $380 billion in market value this week following Democratic victories in Texas midterm elections. Democratic wins in Texas Senate, governor, and attorney general races have sparked investor fears of stricter regulation and potential obstacles to data center expansion, a key revenue source for SpaceX and Tesla. Goldman Sachs analysts warn moratoriums could affect 45% of planned US data center capacity growth. The political shift also threatens Musk's $119 billion Terafab chip manufacturing project in Texas and complicates a potential Tesla-SpaceX merger, which analysts say now faces a more difficult regulatory path through 2027.