Shares of Elon Musk’s companies, Tesla and SpaceX, have fallen by around 15% over two days following the Democrats’ victory in the US midterm elections. According to Bloomberg, the sell-off began on November 5. By 19:52 Baku time, SpaceX shares had dropped 14.52%, while Tesla shares had fallen 14.36%.
Investor concerns have largely centred on the possibility that the planned merger between SpaceX and Tesla could be delayed or become significantly more difficult to complete. Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, said that finalising the deal would be extremely challenging amid market volatility and stricter regulatory scrutiny from Democrats. SpaceX shares have also come under pressure amid a broader sell-off in companies linked to artificial intelligence and data centre infrastructure.
On Thursday, the Nasdaq 100 fell by 6%, while the iShares Semiconductor ETF was heading towards its worst daily performance since 2020. Musk spent heavily on supporting the Republicans' election campaign, but their defeat has created additional risks for his companies. In particular, Democrats could tighten regulations governing Musk's businesses.
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