Elon Musk’s business empire suffered a combined $456 billion loss in market value over two trading sessions, with Tesla and SpaceX shares plunging after Democratic victories in the US midterm elections intensified political uncertainty, raised questions over government contracts and exposed the risks surrounding the companies’ dependence on expanding artificial intelligence infrastructure.
Tesla shares fell 10.77 percent on Thursday to $343.69, shedding $41.50 per share in a single session and extending losses from Wednesday.
SpaceX shares also dropped 9.05 percent to $123.62, leaving them approximately 8.4 percent below their $135 initial public offering price in June and reducing the company’s market capitalization to about $1.68 trillion.
The sell-off came as investors reassessed the political and financial risks facing Musk’s companies following Democratic gains across the Senate, House and gubernatorial races, including in Texas, where both businesses are headquartered.
The election results also complicated the outlook for Musk’s political and business ambitions, particularly as candidates opposing the expansion of data centers secured important victories, raising concerns about construction delays and the rejection of permit applications.
Both Tesla and SpaceX have substantial exposure to the expansion of data-center infrastructure.
SpaceX generated more than half of its third-quarter revenue from renting computing capacity, while Tesla has been marketing battery-storage systems to data-center operators.
The changing political landscape could also complicate a potential merger between Tesla and SpaceX.
Musk said last month that special committees were examining the possibility of a deal, but the prospect of regulatory scrutiny under a changed political environment has added another layer of uncertainty to the proposed transaction.
Meanwhile, the financial damage extended directly to Musk’s personal fortune.
His estimated wealth dropped by $79.7 billion on Thursday, leaving him with approximately $785 billion, according to the Bloomberg Billionaires Index, although he remained the world’s richest person.
The $456 billion decline represents the combined reduction in the market value of Tesla and SpaceX over two trading sessions, while Musk’s personal losses reflect the falling value of his ownership stakes.
The financial setbacks followed Musk’s extensive intervention in the US midterm elections, where he spent $447 million supporting Republican candidates, many of whom ultimately lost.
Following the Democratic victories, shares in both companies came under immediate pressure, with earlier trading losses already wiping out more than $120 billion in combined market value, according to Bloomberg.
Musk’s political campaign also faced renewed scrutiny as his election-related posts on X began disappearing.
On Tuesday morning, he had urged his followers to support Republican candidates with the message «Vote red today!», but the post was subsequently removed.
His pinned message encouraging voters to support Republican Senate candidates also disappeared around the time Democratic candidate James Talarico declared victory in the Senate race, according to Forbes.
Musk later attempted to respond to the election outcome with humor, writing on X: «Data centers in space looking pretty appealing right now.»
However, his subsequent activity on the platform largely returned to promoting Grok and his business ventures.
He also posted that «Voter ID failed in California,» while the electoral outcome left his companies facing a more complicated political and regulatory environment.
The setbacks have placed renewed attention on the risks of combining extensive political spending, close ties to government and major corporate expansion plans, particularly as Musk’s companies remain exposed to decisions involving public contracts, regulatory approvals and infrastructure development.
Reuters reported that Musk’s business empire was preparing for the consequences of the Democratic electoral gains, as the political environment in Texas and other key areas shifted against some of his companies’ interests.