SpaceX Slides 9%, Tesla 11% as Democratic Midterm Wins Threaten Data Center Buildout and Merger Path
SPCX sits 20% above its 52-week low of $104.83.
Summary
SpaceX fell nearly 9% and Tesla dropped over 11% Thursday, extending Wednesday's selloff as Democratic midterm wins in Texas raise fears of data center moratoria and tougher scrutiny of Musk's businesses. Combined, the two companies were on pace to shed more than $380 billion in market value this week. The political risk is direct for SpaceX: more than half of Q3 sales came from renting computing capacity, and Goldman Sachs estimates Democratic wins could hit about 45% of planned US data center capacity expansion. The results also complicate the SpaceX-Tesla merger Musk floated on the October earnings call, with analysts now calling the regulatory path to a 2027 close much harder. Tesla's energy unit, which pitches storage to data center operators, is exposed to the same slowdown.
At the time of this announcement, SPCX was trading at $126.30 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.7T. The 52-week trading range was $104.83 to $225.64. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.