SPCX, ASTS and RKLB, along with several other space stocks, fell between 2% and 6% overnight as fears of political backlash against Elon Musk after Democratic midterm gains spread across the sector. Market observers said heightened scrutiny of government contracts and possible hearings could complicate a Tesla–SpaceX merger, though it would not automatically block the deal. Musk contributed $446 million during the 2026 midterm cycle, mostly to Republican-aligned groups. Investor George Noble urged adding to his bearish bets on SPCX and TSLA, while Morgan Stanley said SPCX trades cheaper than the S&P 500 for fiscal year 2028, at 17.6 times estimated earnings versus the index's 17.7 times.
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midterm electionsSpaceXTSLAElon Muskmergers and acquisitions
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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.
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