The key facts
- Tesla and SpaceX shares fell about 15% over two days after the Democrats' victory in the midterm elections
- Financial Times estimated Musk's possible wealth loss at about $30 billion — this concerns the market value of assets, not a loss of cash
- Investors are worried about possible antitrust scrutiny of a potential Tesla–SpaceX merger and oversight of data centers
The drop after the election
The Democrats' victory in the US midterm elections turned into losses for Elon Musk's businesses: Tesla and SpaceX shares fell by about 15% over two days. This was reported by Life.ru, citing Business Insider. According to the outlet, Musk invested significant funds in supporting the Republicans during the campaign, and the defeat of Donald Trump's party changed the balance of power in Congress and created additional risks for his companies.
What investors fear
Investors fear that the new majority in Congress will tighten oversight of the billionaire's businesses. Particular concern is raised by a possible merger of Tesla and SpaceX: expectations of such a deal had previously fueled interest in the companies, but now the Democrats may strengthen antitrust scrutiny of such arrangements. Pressure on SpaceX is also mounting for reasons unrelated to politics: the company found itself at the center of a sell-off in shares of firms tied to artificial intelligence and data center infrastructure. On Thursday, the Nasdaq 100 index fell 6%, and the iShares Semiconductor ETF approached its worst daily performance since 2020. Business Insider also notes concerns about increased oversight of the construction and operation of data centers, which could complicate SpaceX's AI plans; the transition of a number of states to Democratic control also matters, including Georgia and Texas, where such infrastructure is actively being developed.
Estimating the wealth loss
Financial Times, as Life.ru previously reported, linked the decline in Musk's wealth to the falling value of his Tesla and SpaceX stakes and estimated the possible losses at about $30 billion. It is clarified, however, that this refers to a decrease in the market value of assets, not a loss of that amount in cash. Thus, the two estimates — a 15% drop in share prices over two days and a loss of tens of billions in wealth — describe the same market movement from different angles: the stock losses are reflected primarily in the paper value of Musk's stakes, not in actual money withdrawn.
