The Democrats' landslide victory in the midterm elections dealt a heavy blow to the Republican Party and President Trump, and Elon Musk, the party's biggest donor, may have been hurt just as badly. Musk reportedly spent close to $450 million backing GOP candidates across the country and in Texas, where SpaceX and Tesla are headquartered, but the donations failed and may have backfired. Democrats are expected to curb the rapid growth of AI businesses and could call Musk before Congress to answer questions about his leadership of DOGE. On Wednesday, SpaceX shares fell 3.8% to $135.92 and Tesla dropped 3.3% to $385.19, with both companies valued well above $1 trillion. Analysts said the data center business, which was SpaceX's biggest revenue and profit driver in the third quarter at $7.6 billion, could face tougher permitting and regulation, while the Terafab chip plant is unlikely to face a slowdown.
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Elon MuskSpaceXTSLAmidterm electionsdata centers
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TSLA
▼ Likely negativeTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.6T |
| Close on 11/04/2026 | 385.30 |
| Change that session | -3.31% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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