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Tesla and SpaceX Shares Drop, Erasing $420 Billion in Market Value
SpaceX and Tesla shares drop, erasing $420 billion in market value as investors fear congressional probes of Musk.
Key points
- SpaceX and Tesla shares fell about 9% and 11% on Thursday afternoon.
- Deutsche Bank analysts said SpaceX could face incremental headwinds and that its Texas compute capacity could be at risk of delays.
- Democrats won control of both the House and Senate in the U.S. midterm elections.
Why it matters. Deutsche Bank analysts said SpaceX could face incremental headwinds, and regulatory scrutiny could block a proposed merger of SpaceX and Tesla that shareholders would still need to approve.
SpaceX and Tesla shares fell about 9% and 11% on Thursday afternoon, erasing over $420 billion in market value since Tuesday's close. Musk's wealth, which topped $1 trillion after SpaceX's June IPO, is now below $800 billion, according to Forbes. The Financial Times reported that Musk was the biggest donor to GOP candidates in the midterms, with contributions exceeding $470 million, yet most candidates he backed lost.
Latest updates
Tesla and SpaceX Shares Drop, Erasing $420 Billion in Market Value
Tesla and SpaceX shares declined by about 11% and 9%, respectively, on Thursday afternoon, November 6. Their combined market capitalisation fell by $420 billion. CNBC reports that investors were concerned Elon Musk could face new congressional probes. Fortune reports that the two companies fell even as the broader market rallied, with investors worried about political retaliation. The companies have not announced any response to the decline.
Tesla and SpaceX Shares Fall After Republicans Lose Midterm Elections
Shares of Tesla and SpaceX, companies led by Elon Musk, fell after Republicans lost ground in the midterm elections. Democrats have won control of the House and Senate. Some Democrats have signalled they intend to investigate Musk once they take power in Congress. Musk has antagonised Democrats, according to The New York Times. NBC News reported that voters signalled unhappiness with the economy and rising consumer and fuel prices.