Tesla and SpaceX Shed Over US$420 Billion in Value After Democrat Midterm Win
Tesla and SpaceX shed over $420 billion in combined value following Democrats’ midterm election victory. Elon Musk faces increased regulatory scrutiny.
SpaceX and Tesla have together lost more than US$420 billion in combined value since the 3 November midterm elections in the United States, according to a CNBC report cited by Sputnik/RIA Novosti on Thursday.
The sell-off in technology shares has been driven by investor concern over heightened scrutiny of billionaire Elon Musk’s companies, the report said. That scrutiny is expected to include congressional investigations and stricter regulatory action following the Democratic Party’s victory in the midterms.
Democrats Seize Control of Both Chambers
The 3 November elections saw the Democrats gain control of both the Senate and the House of Representatives. The results also produced notable state-level outcomes: Texas elected a Democratic governor for the first time in 30 years, while Kansas sent a Democrat to Congress for the first time in 94 years.
Musk had publicly urged Americans to “vote red” ahead of election day. Federal Election Commission data cited by CNN in late October showed that Musk had contributed more than US$445 million to the midterm election cycle, making him the largest known donor in that cycle.
Musk’s Personal Wealth Falls Below US$800 Billion
The erosion of his companies’ market value has weighed on Musk’s personal fortune, which the CNBC report said had fallen from US$1 trillion in June to below US$800 billion. Despite the decline, the report noted that Musk remains the wealthiest individual on Earth.
