Tesla (TSLA) and SpaceX (SPCX) shares fell over 2% on Wednesday despite a broad market rally, after Democrats took control of both houses of Congress in a 'Blue Wave' that flipped Texas, home to both companies. Musk spent $224 million backing Texas Republicans, part of at least $446 million he gave to Republican candidates and groups before the vote. Democrat Gina Hinojosa unseated Gov. Greg Abbott to become the first Democratic governor of Texas since 1990, and she has pledged a moratorium on new data center construction in the state, a move that threatens the AI buildout underpinning both stocks. Reports suggest a push to announce a Tesla-SpaceX merger by the first half of 2027, though talks remain exploratory. Wedbush's Dan Ives wrote that Musk 'needs to find the path forward with Texas' after the Democratic wins.
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TSLASpaceXElon Muskmergers and acquisitionsdata centers
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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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