Tesla, SpaceX Shed $100 Billion After Midterms as Musk's $500 Million Political Bet Backfires
Updated
Updated · The Independent · Nov 6
Tesla, SpaceX Shed $100 Billion After Midterms as Musk's $500 Million Political Bet Backfires
3 articles · Updated · The Independent · Nov 6
Summary
$100 billion in combined value was wiped from Tesla and SpaceX after U.S. midterm losses for candidates backed by Elon Musk, undercutting his political influence as well as his companies.
$500 million in campaign spending failed to overcome voter backlash tied to Donald Trump, the Iran war and growing unease over the power, energy use and water demands of AI and data-center expansion.
Democratic control now points to tougher scrutiny of Musk's businesses, including Starlink's role in Ukraine, government contracts, subsidies and regulatory approvals crucial to Tesla, SpaceX and related projects.
Congress is also expected to examine Musk's four-month stint at the Department of Government Efficiency, where critics say his access to government data and information may have given his companies an unfair edge.
With polls showing just over half of U.S. adults view Musk unfavorably, the election has sharpened pressure on him to choose between partisan activism and leading strategically important businesses.