Observed Signal · Nov 6, 2026 · Earnings Report · Source: Trending Topics (DACH/CEE Innovation & Tech) · Impact: 3/5 · Sentiment: Negative
Tesla and SpaceX lose $457B after Musk's election bet
Elon Musk's political spending on the U.S. midterm elections has backfired, as Tesla and SpaceX lost a combined $457 billion in market value within two trading days. Musk spent about $474 million supporting Republican candidates, including $212 million on the losing Texas Senate race. Tesla's stock dropped 13.8% to $343.69, while SpaceX fell 12.5% to $123.62. The losses coincide with a broader tech sell-off, but analysts also cite political factors, including the new Democratic Texas governor's opposition to Musk's data centers and tax breaks. Musk's personal fortune has shrunk by $90 billion, and his political influence is waning.
Significant market value loss for Tesla and SpaceX, key players in the tech and AI infrastructure sector, due to political factors and potential regulatory changes in Texas.
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Key Takeaways & Evidence Grounding
- Tesla and SpaceX lost a combined $457 billion in market value in two trading days after the U.S. midterm elections.
- Elon Musk spent approximately $474 million on Republican campaigns, including $212 million on the losing Texas Senate race.
- Tesla's stock dropped 13.8% to $343.69, while SpaceX's stock fell 12.5% to $123.62.
- Democrats won the Texas governorship, Senate seat, and attorney general race, threatening Musk's business interests.
- The decline also coincided with a broader tech sell-off, affecting AI and data center stocks, and Musk's fortune fell by $90 billion.
Connected Companies & Entities
“Tesla's stock fell 13.8% to $343.69, erasing $216 billion in market value.”
“SpaceX stock fell 12.5% to $123.62, wiping out $240 billion, dropping below its IPO price.”
“Deutsche Bank sees SpaceX 'facing some incremental headwinds' in this environment.”
“AMD and Micron lost around 16% in the tech sell-off.”
“Micron lost around 16% in the tech sell-off.”
“Microsoft is the sole tenant of the new Amsterdam data center, which faced protests.”
“Data center operators like CoreWeave and Nebius lost 15-18%.”
“Forbes analyzed that 44 of 106 Musk-supported candidates lost.”
“Data center operators like CoreWeave and Nebius lost 15-18%.”
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Musk Pours $366 Million into Midterm Elections
Elon Musk's unprecedented political spending in the 2026 midterms backfired, as Democrats won sweeping victories and rejected billionaire influence and tech power. Musk spent at least $474 million, including $224 million in Texas, yet his favored candidates lost, causing SpaceX and Tesla shares to fall. Democrats took control of Congress, threatening scrutiny of his federal contracts and AI infrastructure. The election also saw a backlash against data centers: voters approved restrictions, and Texas Governor-elect Gina Hinojosa called for a moratorium and end to tax breaks. Over $173 million was spent on anti-data-center ads, mostly by Democrats. JPMorgan estimates the AI buildout could cost $5 trillion through 2030. Musk's earlier $366 million commitment grew significantly, highlighting the high stakes for his business interests.
SpaceX dips on Dem retribution fears; Deutsche Bank says buy
Shares of SpaceX fell nearly 13% on Wednesday and Thursday after the Nov. 3 midterm elections, on fears of Democratic 'retribution' against Elon Musk. However, Deutsche Bank analyst Edison Yu suggests the risks are more about 'perception' than reality, citing Musk's near-monopoly in rocket launches and the fact that most dealings are with the executive branch, which remains Republican-controlled. Yu reiterates a 'buy' rating with a $250 price target. Despite Texas flipping blue at the gubernatorial level, which could affect data center buildout, most of SpaceX's computing power is outside the state, limiting near-term impact. Baron Capital's Ron Baron also defended Musk on CNBC, noting the political pressure he faces.
Midterm Fundraising: Democrats Lead, Musk Boosts GOP
FEC filings reveal Democratic candidates outraising Republicans in key Senate and House races, but Republicans counter with record outside spending from billionaires like Elon Musk, who donated over $276 million in Q3, including $158 million to Senate Leadership Fund. That fund raised a record $272.9 million, far exceeding its Democratic counterpart. Democratic megadonors like Dustin Moskovitz and Reid Hoffman also contributed. Comcast Advertising highlights its role in the record-breaking 2026 ad spending cycle, projected to exceed $11.6 billion by AdImpact. Comcast offers linear and CTV inventory with audience targeting in key states, frequency caps to reduce viewer fatigue, and notes some campaigns use national buys during live sports for cost-effective exposure, despite potential waste. Sarah Fuller anticipates even more strategic use of CTV in 2028.
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