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.
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TSLAElon MuskSpaceXmergers and acquisitionsmidterm elections
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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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