Musk's Tesla and SpaceX Shed $420B in Market Cap Following Midterms

SpaceX and Tesla shares declined by about 9% and 11% respectively on Thursday afternoon. Investors grew concerned that Elon Musk could face new congressional probes and his companies stricter regulations following the U.S. midterm elections, coinciding with a broader tech sell-off. The market declines brought aggregate market cap losses for SpaceX and Tesla to over $420 billion since Tuesday's close. Musk, who was the biggest donor to GOP candidates and causes in the midterms with contributions exceeding $470 million, saw most of the candidates he backed lose their races as Democrats won control of both the House and Senate. Musk's personal wealth dropped below $800 billion after losing about $90 billion over the past week, though he remains the richest man in the world. Analysts noted that companies like SpaceX could face incremental headwinds and potential delays regarding compute capacity and infrastructure projects due to the new political backdrop and potential regulatory scrutiny.