Tesla and SpaceX Shares Dip Amid Election Results
Following the midterm elections, stocks of Elon Musk's companies fell as his political investments did not yield expected outcomes.
Following the midterm election results, the stocks of Elon Musk's companies, Tesla and SpaceX, experienced a notable decline, marking a significant shift in the financial landscape for these tech giants. The dip in share prices comes at a time when Musk has been making substantial political moves, having invested hundreds of millions of dollars into the U.S. elections 23.
Elon Musk, who is reportedly considered the world's richest person 1, saw his efforts to influence the political sphere through financial contributions fall short of expectations. This outcome may have impacted the market sentiment towards his companies, leading to the observed decrease in their stock values.
The election results brought about changes in leadership in several states, notably Texas, where Democrats secured the governor's mansion with Gina Hinojosa defeating incumbent Greg Abbott 3. This shift could potentially affect the business environment, particularly for the technology sector, given that approximately 27% of planned data center gigawatts are located in Texas 3. Texas represents around 25%-30% of data center gigawatts and capacity, making it a crucial region for tech infrastructure 3.
Furthermore, other states such as Georgia, Pennsylvania, and Ohio also saw Democratic governors elected or re-elected 3. These states collectively account for a significant portion of planned U.S. data center gigawatts, with Georgia representing 7%, and Ohio and Pennsylvania each accounting for 5% 3. This distribution highlights the importance of these states in the broader context of technological development and investment.
What we know
- SpaceX and Tesla stock prices decreased following the midterm election results 123
- Elon Musk invested hundreds of millions of dollars in the U.S. elections 23
- Democrats won the Texas governor's mansion, with Gina Hinojosa defeating incumbent Greg Abbott 3
- Approximately 27% of planned data center gigawatts are located in Texas 3
- Texas represents around 25%-30% of data center gigawatts and capacity 3
- Georgia, Pennsylvania, and Ohio also had Democratic governors elected or re-elected 3
- Georgia accounts for 7% of all planned U.S. data center gigawatts 3
- Ohio and Pennsylvania each represent 5% of all planned U.S. data center gigawatts 3
Trust Score report
Likely accurate — probability of truth 77%, weighted across 9 claims from 3 independent outlets.
- confirmed SpaceX and Tesla stock prices decreased following the midterm election results. (94%)
- confirmed Elon Musk invested hundreds of millions of dollars in the U.S. elections. (85%)
- likely Elon Musk is considered the world's richest person. (72%)
- likely Democrats won the Texas governor's mansion, with Gina Hinojosa defeating incumbent Greg Abbott. (71%)
- likely Approximately 27% of planned data center gigawatts are located in Texas. (71%)
- likely Texas represents around 25%-30% of data center gigawatts and capacity. (71%)
- likely Georgia, Pennsylvania, and Ohio also had Democratic governors elected or re-elected. (71%)
- likely Georgia accounts for 7% of all planned U.S. data center gigawatts. (71%)
- likely Ohio and Pennsylvania each represent 5% of all planned U.S. data center gigawatts. (71%)
Sources
- NYT Business — Musk Faces Setback as SpaceX and Tesla Stocks Tumble on Midterm Election Results
https://www.nytimes.com/2026/11/04/business/musk-elections-spacex-tesla-stocks.html - MarketWatch — Tesla and SpaceX shares slide as Musk’s political push falls flat
https://www.marketwatch.com/story/tesla-and-spacex-shares-slide-as-musks-political-push-falls-flat-c15d29a3?mod=mw_rss_topstories - CNBC — SpaceX, Tesla fall around 4% on Democrats' big win; AI data center stocks slide
https://www.cnbc.com/2026/11/04/ai-stocks-texas-governor-data-centers.html