Shares of Space Exploration Technologies (SPCX) fell 5.5% and Tesla dropped 5.1% after Democrats won the U.S. midterm elections, raising concerns about regulatory scrutiny and possible delays to expansion of AI infrastructure. In Texas, where Musk has major operations, Gina Hinojosa defeated Republican Gov. Greg Abbott and has proposed suspending new data-center projects until stronger protections on electricity costs, water use and community concerns are in place, a move particularly relevant to SpaceX's plan to raise AI computing capacity from 1.7 gigawatts at the end of September to as much as 3 gigawatts by year-end and 13 gigawatts in 2027. Musk spent nearly $500 million supporting Republican candidates and political groups, and Democratic lawmakers may examine his government contracts and his earlier role in the Department of Government Efficiency. No statewide data-center moratorium has been enacted yet, and the financial impact remains uncertain.
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Elon MuskSpaceXTSLAdata centersmidterm electionsregulation
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Related tickers and likely impact
TSLA
▼ Likely negativeTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.6T |
| Close on 11/04/2026 | 385.30 |
| Change that session | -3.31% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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