Tesla, SpaceX lose $456B in market value after US midterm elections

The combined losses occurred between Tuesday's market close and the end of trading Thursday.

Tesla shares plunged 10.77% to $343.69 on Thursday, bringing the electric vehicle maker's market capitalization to around $1.36 trillion.

SpaceX shares fell 9.05% to $123.62, leaving the aerospace company's valuation at approximately $1.68 trillion.

The declines followed Democratic victories in both chambers of Congress and key elections in Texas, where both companies are headquartered.

Democrat Gina Hinojosa defeated incumbent Republican Gov. Greg Abbott in the Texas gubernatorial election, while James Talarico won the state's US Senate race against Republican Attorney General Ken Paxton.

Investors assessed whether the political shift could lead to tighter oversight of Musk's companies and restrictions on data-center construction.

Both companies are expanding their artificial intelligence infrastructure, raising concerns about how potential regulatory changes could affect their operations.

The losses also coincided with broader selling pressure across US technology stocks, making the election results one of several factors weighing on the companies.

SpaceX began public trading June 12 under the ticker SPCX.

The $456 billion decline represents a reduction in the combined market value of the companies' outstanding shares, rather than a direct cash loss or an equivalent decline in Musk's personal fortune.