Tesla and SpaceX shares fell about 1.8% in postmarket trading on Tuesday after Senator Jon Ossoff was projected to win reelection in Georgia, and Decision Desk HQ later projected Democrats would take control of both the House and Senate. Investors worry that a Democratic-led Congress could tighten AI regulations and cast doubt on a potential merger of the two companies, though Congress cannot single-handedly block a deal. Tesla shares have rallied 34% since their late-July low, while SpaceX, which went public in June, holds a $1.9 trillion market valuation and earns billions from US government contracts. Market watchers warned that Democratic control could strengthen scrutiny of Musk's conduct and slow the anticipated tie-up.
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TSLASpaceXElon Muskmidterm electionsmergers 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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