SpaceX shares fall after Democratic midterm gains raise regulatory concerns

Premarket decline after election results

CoinGape reports that SpaceX stock, traded under the ticker SPCX, was down 7.64% in premarket trading at the time of writing. The decline came even though broader market futures were higher, with the S&P 500 and Nasdaq futures both up about 1%. The report says Tesla shares also fell, dropping 5.3% before the market opened.

CoinGape says investors were reacting to preliminary midterm election results that pointed to Democratic control of both the US House and Senate. The article says the market is trying to gauge what that outcome could mean for Elon Musk-owned companies, especially SpaceX and Tesla.

Regulatory concerns tied to Democratic gains

According to CoinGape, the election result raised questions because Democratic lawmakers had previously called for investigations into Musk’s government contracts and his role in the Department of Government Efficiency, or DOGE. The report says the Democrats’ wins increase uncertainty for SpaceX stock because of possible regulatory scrutiny.

The article also says Republicans lost control of both chambers despite Musk spending $474 million to support Republican candidates. CoinGape reports that this political result added to the pressure on SPCX shares.

Texas and data center scrutiny

CoinGape says the concern extends beyond federal politics to Texas, where SpaceX operations are based. The report says Texas elected a Democratic governor for the first time since 1990 and a Democratic senator for the first time since 1988. It says the newly elected governor and senator campaigned on tighter regulation and a crackdown on data center expansion.

The article cites Goldman Sachs as saying the Democratic wins could affect 45% of US data centers. CoinGape says this issue matters for SpaceX stock because it sees AI-focused stocks as vulnerable if data center expansion faces more restrictions. The report adds that Elon Musk joked he might move data centers to space.

CoinGape also quotes Washington reporter Dave Troy, who said that much of what has been proposed may never be built and that “The AI bubble is about to collapse.” The report says he argued voters rejected data centers.

Technical levels and outlook

CoinGape says SpaceX stock has fallen to support in the $133 to $135 range, and that selling pressure is rising because of the regulatory uncertainty tied to the election. The article notes that SPCX has bounced from this support several times since early August, but says the broader environment has changed.

The report says a further selloff could push the stock toward $130, which it describes as a psychological level. CoinGape adds that the last time SPCX fell below $130 was in July, after which it declined toward $104. It also says a prior CoinGape analysis had warned that continued selling pressure could send the shares to $108.

The article says the RSI is below 50 and the MACD line is below the signal line, which it interprets as bearish momentum. CoinGape says an uptrend would only be confirmed if the stock moves above $150 and closes above that level for three straight days. It adds that any recovery could come after the post-election reaction fades and the shares begin to track the broader tech rally.