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Tesla and SpaceX Shares Fall After Republicans Lose Midterm Elections
Tesla and SpaceX shares fall as Democrats win control of Congress in US midterm elections.
Key points
- Tesla's stock fell over 5 percent when markets opened on Wednesday.
- SpaceX, which conducted a blockbuster public offering in June, fell more than 7 percent before recovering some losses.
Why it matters. A Democratic-controlled Congress could complicate a possible SpaceX and Tesla merger and could also complicate Starlink's plans to expand into mobile telecommunications.
Tesla and SpaceX shares fell on Wednesday morning after Democrats claimed sweeping midterm victories. Tesla dropped over 5 percent at the open, and SpaceX fell more than 7 percent before recovering some of those losses. Meta, Google and the wider stock market rallied at the start of trading, while Elon Musk had spent nearly $500 million backing Republican candidates.
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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.