SpaceX falls below IPO price after election-driven selloff

SpaceX slips below its IPO price

Finbold reports that SpaceX stock has been trending lower over the past 30 days, and that the extended session ahead of Thursday, November 5, brought a notable milestone: the shares fell below the company’s original IPO price. At the time cited in the article, SpaceX was down 1.99% on the day, moving from a Wednesday close of $135.92 to $133.22.

Election results tied to the decline

According to Finbold, the drop appears broadly connected to the Democratic sweep in the U.S. midterm elections held on November 3. The article says the market reaction is being interpreted as a sign that Elon Musk’s business interests may face closer attention because of his ties to President Donald Trump’s administration and his role in federal matters.

Starlink, Starshield, and political scrutiny

Finbold points to a recent October episode in which Ukraine briefly experienced disruptions in access to SpaceX’s Starlink and Starshield systems. The article says responsibility was deflected by several parties. It cites Musk as saying the government controls the military part of the network, while Trump said he did not know who ordered the disruption.

D.O.G.E. and wider controversy

The article also says criticism of Musk’s actions reaches back to the start of Trump’s second term and the Department of Government Efficiency, or D.O.G.E. Finbold notes that the group was presented as a cost-cutting effort and that some early remarks suggested savings of as much as $2 trillion a year, but the article says it appears not to have met that goal, citing a rise in the deficit since early 2025.

Finbold further says Musk played a role in diminishing the federal government, with the most prominent example being the dissolution of USAID. The article adds that critics of the Republican administration said some cuts hurt the government’s ability to manage air traffic and track diseases such as bird flu in early 2025. It also says others warned that D.O.G.E. could have affected national security because of the secrecy around its work, its broad access to government systems, and questions about the legitimacy of its staff.

AI regulation and Tesla’s post-election move

Returning to SpaceX, Finbold says the company could also be affected by Democratic control of Congress and several governorships because of its super intelligence, or SI, business, which Trump uses as a term for artificial intelligence. The article says Democrats have pushed for stricter AI regulation, including a pause or ban, and that data centers are also under scrutiny for pollution because of limited power-grid capacity and allegations that Musk’s facilities use large numbers of gas turbines.

Finbold adds that Tesla stock also fell after the so-called blue wave, even though it might have benefited from the political shift. The article says Tesla’s weakness is linked to Trump’s support for fossil fuels over renewables and the end of tax credits for EV purchases. It concludes by saying Tesla is not automatically a buy because Musk’s public standing can weigh more heavily on his companies when he faces scrutiny.