Tesla and SpaceX (SPCX) each fell 4% in early trading after Democrats won control of the House and Senate. Congress has no vote on the Tesla–SpaceX merger, but hearings and subpoenas could slow a deal that needs nearly 1.98 billion yes votes out of 3.953 billion Tesla shares outstanding. Musk gave $446 million during the 2026 midterm cycle, and Democrats have threatened to investigate his DOGE tenure and federal contracts. Gary Black put a fair premium at 20–25%, but warned that arbitrage traders could push down SPCX’s price and the deal premium after an announcement. At 189x forward earnings, Tesla trades well above its three-year average of 137x.
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TSLAmergers and acquisitionsSpaceXElon Musk
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TSLA
▼ Likely negativeTesla, Inc.
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.6T |
| Close on 11/03/2026 | 398.22 |
| Change that session | -1.39% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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