Tesla and SpaceX are paying the price for Musk's midterm bets.

Musk has many impressive accomplishments. DOGE & Political acumen aren't among them. Neither is the Cybertruck.

Elon Musk's post-election rout deepens as SpaceX and Tesla lose $411 billion in market cap

Tesla stock is down about 24% for the year as investors weigh Democratic wins in Congress and in Texas, home to both companies

By Cris Tolomia, Quartz Media

Updated November 5, 2026

Tesla $TSLA -10.77% and SpaceX, both led by Elon Musk, extended a stock selloff on Thursday as investors feared that Democratic gains in the midterm elections would complicate Musk's push to grow his sprawling group of companies, according to Bloomberg.

Tesla stock fell as much as 12% on Thursday after a 3.3% drop on Wednesday. SpaceX stock touched an 11% loss at one point, after shedding 3.8% on Wednesday. In recent trading, Tesla stock was down 11% and SpaceX stock was down 8%. Tesla stock is down about 24% for the year.

Tesla and SpaceX had lost $411 billion in combined market value since the election results became clear, as of 11:40 a.m. Eastern time. MarketWatch put the two-day loss at $450 billion.

Musk's net worth fell about $74 billion as of noon Thursday, adding to a $33.5 billion drop on Wednesday, according to Bloomberg. If the decline holds, Musk would finish Thursday with roughly $790 billion, off from a $1.3 trillion high reached once SpaceX went public in June.

Democrats took majorities in both houses of Congress and picked up key offices in Texas, the home base of Tesla and SpaceX. Gina Hinojosa defeated Gov. Greg Abbott $ABT -1.65% in the governor's race. During the campaign, Hinojosa urged a halt to new data center development and raised doubts about the state tax incentives handed to Musk's companies, according to Bloomberg.

Joe Gilbert, a portfolio manager at Integrity Asset Management, said the market is attempting to "re-price the risk of a material slowing in data center buildouts," according to Bloomberg.

Investors are also watching a possible merger of Tesla and SpaceX. Special committees formed by each company are weighing a possible deal, and there is pressure to finalize it before the Trump administration's term ends, according to Bloomberg. "A less friendly Congress makes that path messier, even if it doesn't automatically block it," said David Wagner, a portfolio manager at Aptus Capital Advisors.

Tesla and SpaceX stock had fallen in premarket trading on Wednesday after Democrats won control of Congress and candidates backed by Musk lost races across the country. Musk contributed more than $445 million to the 2026 midterms, more than any other donor. His spending totaled at least $474 million, including $224 million in Texas, where Republican Senate nominee Ken Paxton and Abbott lost. Republicans hold the majority in the Texas Legislature, which limits how much Hinojosa can change state policy.

The Tesla and SpaceX declines come as the Nasdaq $NDAQ -2.62% Composite fell more than 5% on Thursday as investors sold AI-related chip and data center stocks. The S&P 500 slid 4%, and the Dow Jones Industrial Average gave up 1,639 points. The Nasdaq 100 fell as much as 6.4%, its worst intraday performance since April 2025, according to Bloomberg.