Tesla and SpaceX Lose More Than $420 Billion After Midterms

Tesla and SpaceX lost more than $420 billion in combined market value over the two days after the U.S. midterm elections, with both stocks falling amid a broader technology selloff.

Tesla shares dropped about 9% and SpaceX shares about 11% on Thursday afternoon. The combined loss compares the companies' market values at Tuesday's close with their levels Thursday afternoon.

Democrats won control of the House and Senate. In Texas, Democrat James Talarico won the U.S. Senate race and Gina Hinojosa won the governor's race, defeating Ken Paxton and Greg Abbott, respectively.

Both companies are expanding AI infrastructure in Texas and plan Terafab, a large facility in Grimes County that would include a data center and semiconductor factory. SpaceX also plans to build a supercomputer at its Starbase launch facility.

SpaceX could face delays in expanding its Texas computing capacity and may need to spend more if data center rules tighten. Musk has promoted a possible Tesla-SpaceX merger, which would require shareholder approval.