SpaceX and Tesla shares fall amid concerns over the implications of U.S. election results

Shares of SpaceX and Tesla fell by approximately 5% and 5.6%, respectively, following a strong performance by the Democratic Party in the U.S. midterm elections. This has fueled investor concerns regarding increased political and regulatory scrutiny of Elon Musk’s companies, as well as potential complications for any future integration between the two firms.

The declines occurred despite Morgan Stanley raising its financial outlook for SpaceX, as fears persist regarding the impact of legislative oversight on the company’s government contracts, artificial intelligence projects, and defense infrastructure initiatives.

Furthermore, new regulatory proposals in the state of Texas—concerning the establishment of data centers and the consumption of energy and water—have added to the uncertainty surrounding the expansion of both companies' investments in artificial intelligence infrastructure.