Invezz says SpaceX stock fell after midterms as investors weigh risks and catalysts

SpaceX shares slide after the midterms

Invezz reports that SpaceX stock has been under heavy pressure after the U.S. midterm elections, when Democrats won control of Congress on Nov. 3. The article says the shares reached their lowest level since August as the AI trade weakened and investors sold after the election result. It adds that SPCX is down 30% from its Oct. 6 peak and 45% from its post-IPO high.

Invezz also says the decline has tracked a broader selloff in names tied to the artificial intelligence trade, including Nvidia, AMD and Arm Holdings. The article attributes part of the political concern to fears that Democrats may investigate Elon Musk’s businesses and federal contracts. It says, according to the Associated Press, Musk spent at least $445 million backing Republican candidates during the election cycle.

Political and regulatory concerns

The article says the political setback renewed questions about SpaceX’s operations in Ukraine. On Oct. 22, Senator Richard Blumenthal announced an inquiry into restrictions affecting Starlink and Starshield communications. Ukrainian officials said those disruptions made it harder to intercept Russian drones. Invezz notes that Democratic lawmakers have asked for records ahead of further investigations expected in January 2027.

The article says there are conflicting accounts about who approved the Starshield restrictions. It adds that U.S. lawmakers have questioned the disruptions, while Ukrainian officials said the restrictions weakened drone defenses. According to the piece, the Pentagon inspector general declined a separate request to investigate, leaving responsibility unresolved.

Invezz also says some investors are worried about Democrats’ approach to the data center industry, which it describes as unpopular with many Americans. The article states that many voters supported several data center moratoriums. It further says a possible merger between SpaceX and Tesla could draw closer scrutiny from Democratic lawmakers, adding another layer of uncertainty.

Growth catalysts cited by the article

Despite the selloff, Invezz says the bull case remains intact because SpaceX’s growth is accelerating. The article says the company’s third-quarter revenue rose 161% to $14.6 billion, and it posted a profit of $4.4 billion. It says growth is occurring across the company’s space, connectivity and Super Intelligence businesses.

The piece says AI revenue climbed to $7.5 billion, up from $2.5 billion in the June quarter and $813 million in the same period last year. Invezz also reports that on Oct. 26, SpaceX announced a $40 billion financing agreement to expand its AI infrastructure. It says the Apollo-led arrangement will pay for Nvidia chips and related computing equipment, with deliveries expected to start in the first half of 2027.

The article adds that SpaceX is expanding Starlink and recently bought low-orbital spectrum for more than $8 billion. Invezz says this move should deepen its competition with AT&T and Verizon. It also cites Kyro AI data showing average revenue estimates of $48 billion for this year and $180 billion for next year.

Technical signals and price levels

Invezz says technical analysis points to further downside before any rebound. The article says SpaceX stock has fallen below its 50-day moving average, its 61.8% Fibonacci retracement level and the Supertrend indicator. It adds that the Relative Strength Index and other oscillators are still declining.

Based on those signals, the article says the stock may continue lower toward support near $100. Over the longer term, Invezz says it could recover toward resistance around $150 and then $176, which it identifies as the stock’s October high.