SpaceX (SPCX) shares fell 2% and Tesla (TSLA) dropped 3% after Democrats swept the midterms, including in Texas, where the newly elected governor campaigned on halting new data center construction. Dan Ives of Yorkville warned the blue wave could slow AI data center build-outs, while Elon Musk replied that data centers in space were “looking pretty appealing right now.” The article says Shaun Maguire’s bullish Sequoia model draws most of its 2028 revenue from ground-based data centers and assumes only a 20% political slowdown, an assumption now under pressure. Wall Street consensus for 2028 revenue is $336 billion, and the author argues orbital compute won’t fill the gap by 2028, making the 2028 estimates the ones to watch. SpaceX spent $19.6 billion on capex in the third quarter, with most of this year’s spending going to its data center segment.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
SpaceXTSLAElon Muskdata centersmidterm elections
Open a keyword to see other news on the same topic.
Related tickers and likely impact
TSLA
• NeutralTesla, Inc.
Relevance: low
| 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
- Was Elon Musk the Midterms' Biggest Loser? What It Means for Tesla and SpaceX Investors
Republicans suffered their worst midterm results in 50 years, and Elon Musk, who spent nearly $500 million on midterm races nationally and around $200 million in Texas, got little return as Texas voters backed Democratic candidates. The Nasdaq Composite rose 2% on Wednesday, while SpaceX fell 3.4% and Tesla dropped 2.3% in early afternoon trading. The article notes that Texas voters want more say on data centers, and Governor-elect Gina Hinojosa has proposed no subsidies for data centers, protection of water supplies and a temporary moratorium. Such rules could affect SpaceX's Terafab project in Grimes County, which could cost as much as $119 billion, as well as its plan to add 10 GW of AI compute by the end of next year. Because both companies' valuations rely heavily on Musk's AI forecasts, the article argues the election results may make those goals harder to reach, though the consequences remain difficult to predict.
- 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.
- Why Shares of Elon Musk’s Tesla, SpaceX Are Sliding After the Midterm Elections
The article says it will take time to determine the stock-market winners and losers of the previous day's midterm elections. For now, investors believe Elon Musk is among the losers.
- Tesla, SpaceX Take a Hit as Dems' Sweep Midterms; McDonald's Moves on Revenue | Stock Movers
Tesla fell more than 5% and SpaceX slipped about 7% in early trading after a Democratic sweep in the midterms, with the Texas result seen as a particular blow to Musk, whose companies are based there. Investors worry about tighter AI regulation and added uncertainty over a potential merger of the two companies. The discussion notes both firms are spending billions on product development for goals still years away, such as robotaxis, robots and Martian colonies. McDonald's also climbed after higher profit and revenue last quarter, as solid international results offset US sluggishness: traffic fell but check amounts rose, helped by its new dirty soda. Uber edged up despite being down about 8% year-to-date, as revenue growth slowed but still slightly beat expectations, while its biggest segment, ride-hailing, fell 2% on higher gas prices and driver competition in India and Brazil.
- SpaceX, Tesla slide as Democratic midterm gains raise political risk for Musk
SpaceX shares fell 3.4% and Tesla dropped 2.7% on Wednesday as Democratic gains in the US midterm elections raised questions about Elon Musk's AI infrastructure plans and a possible merger of the two companies. Musk spent a record $474 million backing Republican candidates, including $224 million in Texas, where both companies are headquartered. Democrats may push for greater scrutiny of AI infrastructure and, in some cases, moratoriums on new data center construction. XTB's Kathleen Brooks said Congress cannot block a merger but could slow it, and that Musk might rush one through within 18 months before Trump leaves office. Both stocks had rallied more than 20% over the past three months, so the election results add a political risk premium that could weigh on their prices.
- How Tesla and SpaceX stocks are reacting to Democrats winning Congress
Defiance ETFs CIO Sylvia Jablonski said the immediate pre-market reaction in Tesla (TSLA) and SpaceX (SPCX) shares to Democratic midterm wins is still early and could change. She suggested that a possible merger between the two Musk companies could be fast-tracked, since it would need to happen within the next two years, before a deal would face closer review. Some House Oversight Committee members have said they plan to call Elon Musk, Dario Amodei, Mark Zuckerberg and Sam Altman to testify, though she doubted such hearings would move stock prices unless they uncover damaging information. She cited Boeing and Facebook as examples where public pressure led to change, and noted that government funding runs out on December 11.
Related markets
Latest news
- The economy brought Trump back to power. Now it's his downfall
Democrats won control of both the House and Senate in Tuesday's midterm elections, ending the Republican Party's trifecta of power in the federal government as voters focused on the cost of living. The CNBC Voter Poll found nearly nine out of 10 voters said the cost of living was a crucial or major factor, and about two out of three said Trump's policies worsened economic conditions. Gas averaged $4.15 a gallon on election day, the highest for any midterm or presidential election since at least 2000, and prices have surged about 37% over the past year amid the Middle East conflict. Zandi estimated that higher energy costs since the start of the Iran war have cost the average household nearly $1,230, while rising borrowing costs and expanded military services added more than $900. The University of Michigan's consumer sentiment survey fell in 2026 to its worst level in its seven-decade history.
- Apple cements its status as tech's biggest heavyweight with the stock's best day in over a year
Investors are turning to Apple as a safe haven. Meanwhile, AI infrastructure stocks are under pressure following the midterm election results.
- Qualcomm stock drops 5% on weak earnings forecast as memory shortage weighs on smartphone sales
Qualcomm's quarterly adjusted EPS of $2.17 and revenue of $10.32 billion slightly beat LSEG consensus, but the stock slid in extended trading. For the current quarter, Qualcomm forecast EPS of $2.15 to $2.35 and revenue of $10.4 billion to $11.2 billion, while analysts had expected $2.27 and $10.48 billion. Handset chip sales fell 26% to $5.14 billion as rising memory costs pushed up phone prices and hurt demand, though the company said it is seeing sequential growth. Automotive revenue soared 89% to $1.99 billion, IoT revenue rose 4% to $1.88 billion, and QTL licensing revenue dropped 7% to $1.3 billion. Qualcomm expects $5 billion in data center revenue in fiscal 2027, up from $650 million this quarter, and CEO Cristiano Amon said the constraint is supply, not demand.
- Google Tells Schools They Can Reject AI—But They'll Lose Search, Too
Google will disable its AI tools by default for K-12 student accounts unless administrators enable them, but schools that want to ban AI entirely will also lose access to Google Search. Administrators can switch Gemini, Gemini Notebook, Gemini in Classroom and Search on or off individually, but Google will not offer a version of Search without AI features, and from early 2027 schools that enable Search will get versions with AI Overviews, AI Mode or Guided Learning. Critics, including New York City Mayor Zohran Mamdani and former FTC chair Lina Khan, accuse Google of using its search dominance to push AI into schools, a debate that comes as New York City's one-year moratorium on student-facing generative AI covers nearly 600,000 students. The move also comes amid antitrust scrutiny after a federal court ruled in 2024 that Google unlawfully monopolized the U.S. search market.
- Diversified Energy Announces Third Quarter Dividend
Diversified Energy has declared a dividend of 29 cents per share for the three-month period ended September 30, 2026, to be paid in U.S. dollars. Shareholders who want sterling must submit a currency election form to Computershare Investor Services by March 1, 2027, and the company will announce the sterling value about two weeks before payment. The company states the announcement contains inside information under UK MAR.
- Why D-Wave Quantum Stock Led a Quantum Computing Crash in October
Shares of D-Wave Quantum (QBTS) fell 35.7% in October 2026, while the S&P 500 slipped 0.9% over the same period. Other quantum computing stocks also dropped sharply: IonQ fell 31.5%, Quantinuum 30.1%, and Rigetti Computing 28.5%. The selloff followed IonQ's agreement to buy cybersecurity firm Elisity for $1.3 billion in stock and its $2 billion equity offering, which raised concerns about dilution as many quantum companies burn cash. D-Wave brought in $12.4 million of revenue over the last four quarters, down 44.2% year over year, while the stock is still worth about $3.9 billion, roughly 316 times sales. The company holds about $500 million in net cash and little debt, so it faces no immediate pressure to raise funds. Its third-quarter results are due November 10, and the stock is down 60.4% year to date and 68.2% below its 52-week high.
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.