Omanghana
Shares of Tesla and SpaceX fell sharply in the two trading sessions following the 2026 US midterm elections, with the companies losing a combined $456 billion in market value as investors assessed the political outcome and a broader technology sell-off.
Democrats won control of both chambers of Congress in Tuesday’s election, while a Democratic victory in the Texas governor’s race raised questions about the outlook for data center development in the state where both companies are based.
At the close of trading on Thursday, November 5, Tesla shares stood at $343.69, while SpaceX shares closed at $123.62.
| Company | Election Day close | November 5 close | Two-session change |
|---|---|---|---|
| Tesla (TSLA) | $398.50 | $343.69 | Down 13.8% |
| SpaceX (SPCX) | $141.31 | $123.62 | Down 12.5% |
The declines include Thursday’s losses of approximately 10.8 per cent for Tesla and 9 per cent for SpaceX.
Texas Result Raises Questions
Democrat Gina Hinojosa defeated Republican incumbent Greg Abbott in the Texas governor’s race. During her campaign, Hinojosa called for a pause on new data center approvals until lawmakers establish protections concerning electricity costs, water use and other community concerns.
Analysts say potential restrictions could affect companies connected to the growth of artificial intelligence infrastructure. SpaceX has expanded its AI computing business, while Tesla supplies energy storage products that can be used by data centers.
Possible Merger and Congressional Scrutiny
The election results have also increased attention on a possible Tesla-SpaceX merger.
Both companies formed special committees to examine a potential combination. The discussions remain exploratory, and no merger has been finalized.
Some analysts believe the changed political environment could make regulatory review more challenging. A Democratic-led Congress could also seek greater scrutiny of Tesla’s autonomous driving technology and SpaceX’s federal contracts.
Wider Technology Sell-Off
The declines came as technology and AI-related stocks faced heavy selling on Thursday. The Nasdaq Composite fell 5.5 per cent, reversing part of the broader market’s gains following the election.
Other electric vehicle makers initially moved in the opposite direction: Rivian and Lucid shares rose on Wednesday after the vote, although the sector remained volatile as markets fell on Thursday.
Source: Omanghana
