Tesla and SpaceX shares fell about 5% in premarket trading after Democratic midterm wins raised concerns about political effects on Elon Musk’s businesses. The drop followed the Texas Senate race, where Democrat James Talarico defeated Republican Ken Paxton, who had been backed by Musk. According to the article, Musk allegedly spent more than $160 million on campaigns against Talarico and over $474 million on Republican politicians and outside groups during the 2026 midterm cycle. Democratic lawmakers reportedly are considering scrutiny of Musk’s time leading the Department of Government Efficiency, and questions may arise over SpaceX’s government contacts and contracts. The article did not name any new probes or policy changes that would directly harm either company’s operations.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
TSLAElon MuskDemocratic Partymidterm elections
Open a keyword to see other news on the same topic.
Related tickers and likely impact
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.
Related news
- Elon Musk’s Tesla and SpaceX Stocks Fall After Democrats Sweep Elections, Senator Warns of ‘Subpoenas’
Shares of Elon Musk’s Tesla and SpaceX fell after Democrats swept the 2026 midterm elections on Tuesday, November 3. According to The New York Times, when markets opened on Wednesday, November 4, Tesla dropped more than 5% and SpaceX more than 7%, before recovering some of those losses.
- AI data center stocks and Musk's companies take hits as Democrats take control
The show discussed Democrats retaking both chambers of Congress, with projections of 55 Senate seats and around 255 House seats, including key races in Texas. Defiance ETFs CIO Sylvia Jablonski said markets seemed reassured that tax and spending plans could be put on hold, while cost of living was the top concern for 89% of exit poll respondents. Congress controls federal spending and could use funding fights to pressure the administration, though President Trump retains veto power. Government funding expires on December 11, setting up a major fight in January, and Dow futures, which had been red overnight, were back to green and up nearly 1,000 points this morning.
- Elon Musk’s record election bet backfired. The backlash may reach beyond one billionaire
Democrats' sweeping midterm victory was seen as a major rejection of Elon Musk and the AI industry, as backlash against President Donald Trump and his tech allies put political influence and debt-fueled data center buildout under sharper scrutiny. Musk spent at least $474 million on the midterms, including $224 million in Texas, yet his favored candidates Ken Paxton and Gov. Greg Abbott lost, and SpaceX and Tesla shares fell overnight. Democratic Governor-elect Gina Hinojosa has called for a moratorium on new data centers and an end to industry tax breaks, though Republicans still control the Legislature. Musk's America PAC spent nearly $87 million across 44 federal races, with more than $80 million, or 93% of its spending, going to races Republicans lost.
- Midterm Takeaways: Tech billionaires suffer horrible night as Democrats drub Republicans
Democrats took control of Congress on Tuesday night, a sharp rebuke to President Donald Trump and his economic record, as voters voiced frustration over rising prices, government corruption and the AI data center build-out. Democrats won key Texas races, with James Talarico defeating Ken Paxton for a U.S. Senate seat and Gina Hinojosa defeating Gov. Greg Abbott, the first Democratic governor of Texas since Ann Richards left office in 1995. Democrats also won in South Carolina, Ohio, Iowa, North Carolina, Georgia and New Hampshire, while many Trump-endorsed candidates lost. Elon Musk, the cycle's largest individual political donor, spent record sums backing Republicans without success, and his spending may have become a liability as voters raised concerns about billionaire influence. The result is expected to make Congress more adversarial toward tech companies and AI data center projects, and futures for the Dow and S&P 500 slipped as the gains became clear.
- Do Democrats Help Or Hurt SpaceX Stock At $135?
Betting markets give Democrats about a 94% chance of taking the House in Tuesday's midterms and about seven in ten odds of taking the Senate. Federal government business made up 20.9% of SpaceX's 2025 revenue, about $3.9 billion, while Starlink drives most of its $18.7 billion in 2025 sales. Democrats could trim missile-defense money, including Golden Dome, for which the Pentagon requested about $17.5 billion for 2027, but could restore NASA funding that the White House's 2027 request cut 23% to $18.8 billion. The bigger new risk is oversight: Democrats have said they would subpoena Musk if they win the House, and inquiries into his DOGE role and his companies' federal deals are under discussion.
- Elon Musk threatens Democrats who plan to launch investigations into him if they win back congressional power
Democrats hope to win back congressional power in the November midterm elections, which could allow them to launch investigations into Elon Musk, including his role in the Department of Government Efficiency (DOGE) and his government contracts, according to Politico. Musk responded on X that he would find out who is really pulling the strings behind those who pick fights with him and go after them. DOGE is reported to have removed over 250,000 federal jobs; Musk first said it would cut $2 trillion in spending, later scaled that to $1 trillion, then estimated about $150 billion for fiscal 2025, while DOGE's official website claims $215 billion in savings. Musk is also accused of restricting the speed of SpaceX's Starshield satellites used by Ukraine's military, an allegation he denies. Musk is the largest individual political donor in modern U.S. history, and Musk-backed, Republican-aligned PACs have spent more than $400 million on midterm election ads, per the Washington Post.
Related markets
Latest news
- Democrats map out an agenda to address affordability and corruption after midterm sweep
Newly elected Democratic majorities in the Senate and House plan to pass a flurry of bills soon after taking office in January, focusing on affordability, including high costs for gas and groceries, CNBC reports. In their first 100 hours, House Democrats plan to restore expired enhanced health insurance subsidies and reverse Medicaid cuts Trump signed last year, while the party also plans to push a bill undoing his sweeping tariffs and to vote again on ending the Iran war. Democrats are also mapping oversight investigations of Trump, his family, cabinet and business supporters, though Minority Leader Hakeem Jeffries said targets have not yet been evaluated. Sen. Ron Wyden, the top Democrat on the Senate Finance Committee, pledged to make billionaires pay their fair share of taxes and to scrutinize insurers and pharmaceutical CEOs. Some Democrats are also pushing an ethics package that could ban stock trading by officials and limit super PAC spending.
- These stocks have soared the most today after the Democrats trounced Trump
Stanley Black & Decker was the strongest performer in the S&P 500 today. Several tech companies and associated power providers posted sharp declines.
- Is Broadcom Stock a Buy Now?
Broadcom shares are down 31% from their all-time high and 4% since the start of 2026, hit by a semiconductor sell-off after Intel's disappointing fourth-quarter guidance. Yet the author notes fiscal third-quarter AI semiconductor revenue of $16.7 billion beat the $16 billion target, up 221% year over year, and total revenue reached $29.6 billion, up 86%. Management guided to $21.7 billion in AI semiconductor revenue for the fourth quarter, up 236%. Risks remain, including competition from Google's expanded Marvell partnership, and the stock trades at 28.3 times forward earnings. The author still considers the valuation justified by the results and finds the shares attractive below their peak.
- Canton Coin Gets SEC Nod as Wall Street Tokenization Heats Up
The SEC's Division of Corporation Finance said it views Canton Coin as a “digital commodity” and won't recommend enforcement action if validators and application providers mint the token programmatically without registering it. The staff relied on Canton's representations that the token's value comes from network operation and supply and demand, and that the network has no “central party.” Canton launched without an initial coin offering or premine, with tokens earned only by running network infrastructure and applications. The relief arrived a week after DTCC launched a tokenization service on Canton that lets firms convert DTC-held stocks and Treasuries into tokens, and Morgan Stanley said it was among the first banks to use it. The SEC noted the letter reflects only staff's enforcement position, not a legal conclusion, and rests on the facts Canton presented. Digital Asset, which created the Canton Network, raised $355 million earlier this year from Wall Street firms and a sovereign wealth fund.
- Blue Chips Surge Past 2.8% as VIX Drops Below 18 While Oil Sinks Nearly 8%
In a single session, the Dow jumped 2.87% to a record 53,275.11, the S&P 500 gained 1.74% and the Nasdaq Composite rose 1.89%, while the VIX fell to 17.08. WTI crude dropped 7.44% to $88.94 a barrel, while gold rose 3.38% to $4,073.40 an ounce and silver gained 5.16%. In earnings news, Amgen reported third-quarter total revenues up 8% to $10.4 billion, and Thomson Reuters' revenues rose 10% to $1,833 million. Agnico Eagle Mines posted quarterly net income of $1,353 million, or $2.67 per share, and returned $478 million to shareholders.
- Alphabet (GOOGL) Is Spending $15 Billion On Malaysia Data Centers
Alphabet (GOOGL) announced a US$15b investment in 2026 to expand Google data centers and AI infrastructure in Malaysia. The expansion includes new cloud facilities meant to serve regional AI demand from enterprise and public sector clients. In a separate development, an Alphabet shareholder sued senior executives, alleging Google's AI models were trained on copyrighted material without proper authorization. The article notes that if courts require tighter controls on training data or raise compliance costs, the AI services built on this infrastructure could face heavier constraints.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.