Shares of Elon Musk's two main companies extended a two-day slide on Thursday, as investors worked through what a Democratic Congress means for robotaxis, government contracts and a Texas construction programme that includes a chip factory.
The Cybercab question
Tesla fell roughly 9% and SpaceX about 11% in afternoon trading, according to CNBC, taking the combined loss in market value past $420 billion since Tuesday's close. Tesla had already slipped 4.5% in premarket trading on November 4 to $380.55 as results came in.
The concern is oversight rather than legislation. Tesla's self-driving robotaxi business, built around the Cybercab, could face more scrutiny of its safety record and expansion plans from committees now chaired by Democrats. SpaceX depends on federal contracts for launch and satellite work, and a hostile majority can slow nominations, request documents and hold hearings.
A Texas build-out under new eyes
Both companies are building AI infrastructure in Texas. Their plans include Terafab, a large site in Grimes County that would combine a data center with a semiconductor factory, and a supercomputer at SpaceX's Starbase facility. Those projects were pitched to a friendly administration and a Republican state government; a Congress controlled by the other party changes the political risk around permits, subsidies and power contracts.
Investors are also watching whether a merger between Tesla and SpaceX, discussed on and off for two years, would draw harder questions in a Democratic House.
Musk's political ledger
Musk was the largest donor of the midterm cycle, giving more than $470 million to Republican candidates and causes, according to the Financial Times. Most of the candidates he backed lost, including races in Texas that Democrats flipped.
His personal fortune, which passed $1 trillion after SpaceX's June listing, has fallen below $800 billion, down about $90 billion in a week on Forbes' tracking. He remains the world's richest person.
The drop came inside a broader retreat from AI-linked stocks, which had rallied for most of the year. The selloff paused on Friday after the October jobs report showed employers added 165,000 positions and unemployment fell to 4.1%, a reading that eased some fears about the consumer.