SpaceX shares drop 3.8% after Democrats win Congress, Gotrade reports

SpaceX shares fall on election-related concerns

Gotrade reported that SpaceX (SPCX) fell 3.81% on Wednesday, November 4, 2026, closing at $135.92. The stock opened below the previous close at $133.24, rose as high as $140.50 during the session, and ended $2.78 above the day’s low. Gotrade said the volume was 41.44% above the stock’s 30-day average. Financial media linked the drop to Democrats’ sweep of the midterm elections, which Elon Musk had spent heavily trying to influence.

Broader market strength and relative underperformance

The article said SpaceX declined on a day when the broader market rose. Gotrade reported that the Nasdaq Composite gained 1.44% to 25,736.51, the S&P 500 rose 1.58% to 7,688.62, and the Dow Jones Industrial Average added 3.03% to 53,356.12. It also said the U.S. 10-year Treasury yield fell 5.8 basis points to 4.89%. Against that backdrop, SpaceX trailed the Nasdaq by 5.25 percentage points. Gotrade added that other Musk-linked and space-related names also fell, with Tesla down 3.34% to $385.19 and AST SpaceMobile down 4.12% to $35.62.

What media reports said about the election outcome

According to The Motley Fool, the stock moved lower after Democrats won the midterm elections, with Musk having spent heavily to influence the race. Gotrade said The Motley Fool cited $224 million spent in Texas, where both SpaceX and Tesla are based. The article also said Teslarati reported that Democrats swept both chambers of Congress and estimated Musk’s spending this cycle at $450 million to $474 million. Gotrade further noted that, in Texas, Democrat Gina Hinojosa unseated Governor Greg Abbott and Democrat James Talarico defeated Ken Paxton in the Senate race.

Policy and business risks cited by analysts

Gotrade reported that the selling reflected worries about what a Democratic Congress could mean for SpaceX. Per Teslarati, Democrats controlling congressional committees could lead to greater scrutiny of SpaceX’s NASA and Department of Defense contracts, which the outlet said make up a meaningful share of revenue. Teslarati also said Starlink’s national-security uses could come under review. The Motley Fool added that a Democratic Congress could make a possible Tesla-SpaceX merger more difficult.

Qualcomm deal and other company-specific factors

The article said company news helped limit the decline. The Motley Fool reported that SpaceX announced a multiyear deal with Qualcomm to build the ground network for Starlink Mobile, described as its planned wireless carrier, and said that announcement partly offset the stock’s drop. Gotrade said TIKR reported that Qualcomm will supply base stations for the Starlink Mobile 5G network in the U.S. beginning in 2027, and that Qualcomm said the agreement covers tens of thousands of sites. TIKR also quoted Ookla lead industry analyst Mike Dano as saying the deal “reinforces the likelihood” that Starlink Mobile could become a credible fourth nationwide mobile network provider in the U.S.

Remaining drivers and risks

Gotrade said Teslarati identified Starlink growth and launch cadence as the main drivers of SpaceX’s business. The outlet also flagged risks including possible delays to contract awards, higher compliance costs, and tighter limits on AI and satellite infrastructure expansion, especially in Texas, where a data-center moratorium has been discussed. The Motley Fool said SpaceX’s AI efforts, which it described as central to recent growth, could face moratoriums on data center construction and stricter oversight of frontier AI labs. Teslarati added that SpaceX’s Starbase launch site and headquarters are now under a new Democratic governor, and said a Tesla merger could face slower regulatory review. Gotrade noted that SpaceX ended the session 39.76% below its 52-week high of $225.64 and 29.66% above its 52-week low of $104.83.