Tesla and SpaceX fall after Musk’s Texas election backing falls short

Share declines after Texas results

Yahoo Finance reports that Tesla and SpaceX shares fell about 5% at the market open on Wednesday after Democrats won a series of midterm contests in Texas. The article says the companies had been down more sharply overnight, with losses reaching about 6% for Tesla and 7% for SpaceX before they recovered somewhat.

Musk’s spending in Texas

The report says the Texas outcomes are likely especially costly for Elon Musk because he spent roughly $224 million backing Republican candidates in the state, according to The New York Times. Yahoo Finance adds that $158 million of that total was spent in September alone. The article also says Musk donated at least $446 million to Republican candidates and groups before the election.

Election wins and market impact

According to Yahoo Finance, the Democratic results included James Talarico defeating Republican nominee Ken Paxton for a Senate seat and Gina Hinojosa unseating longtime Governor Greg Abbott. The article says the share declines mean Musk’s two public companies have lost more than $100 billion in combined market value.

What the losses could mean for Musk’s companies

Yahoo Finance reports that Musk moved SpaceX’s headquarters from California to Texas in 2024 after criticizing California lawmakers. The article says he now faces the possibility that both companies will again be overseen by Democratic officials. It adds that Texas is home to Tesla’s Austin gigafactory, where the company’s robotaxi service operates in several cities, and to SpaceX’s Starbase site in Boca Chica, where Starship launches take place.

Reactions from Musk and an analyst

Yahoo Finance says Wedbush analyst Dan Ives, who is bullish on Tesla and SpaceX, wrote that Musk “needs to find the path forward with Texas now with a Democratic win on both the Senate and Governor race.” The article also says Musk responded on X to the wider Democratic gains by saying SpaceX’s plan to build data centers in space looked “pretty appealing right now,” and joked that his “election-interfering space lasers” had not worked.