Elon Musk's Tesla and SpaceX lose over $420 billion in combined market cap after midterms — SkimNews
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- Tesla and SpaceX lost over $420 billion in combined market cap since Tuesday’s close, with shares dropping 11% and 9% respectively amid investor concerns about regulatory backlash.
- Elon Musk donated over $470 million to GOP candidates and causes in the midterms, making him the largest individual donor, though most of the candidates he backed lost their races.
- Democrats won control of both the House and Senate, raising the prospect of congressional investigations into Musk’s companies and stricter regulation of their operations.
- Gov.-elect Gina Hinojosa campaigned on a moratorium on new data center approvals in Texas, targeting policies that could delay Tesla and SpaceX’s planned Terafab semiconductor and data center facility in Grimes County.
- Deutsche Bank analysts noted SpaceX’s Texas compute expansion could face delays and higher capital costs due to anticipated regulatory tightening around data center development.
- SpaceX is planning a 'supercomputer' at its Starbase, Texas facility, according to job listings, as the company expands its AI infrastructure in a state now led by a Democrat critical of tech-related resource use.
Why it matters: Tesla and SpaceX face costlier, slower infrastructure expansion in Texas just as federal oversight risks rise—despite Musk’s $470M political bet failing to secure favorable outcomes. The $420B market cap loss reflects immediate repricing around regulatory risk, not just election results.
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