Texas Election Sweep by Democrats Sends SpaceX and Tesla Down Over 4%
SPCX sits 30% above its 52-week low of $104.83.
Summary
Democrats flipped both the Texas Senate seat and the governor's mansion, and shares of SpaceX and Tesla — both headquartered in Texas — fell in overnight trading. SPCX dropped 4.15% to $135.45 and TSLA slipped 4.43% to $380.84. The concern is policy: Governor-elect Gina Hinojosa has pushed for a data center moratorium, which puts AI buildout plans in doubt, and Senator-elect James Talarico has been openly critical of Musk's companies. Musk reportedly spent $158 million backing Ken Paxton in the losing Senate race, so the outcome is a direct political setback for him. SpaceX's Starbase is incorporated in Texas and Tesla's HQ is in Austin, so state-level compute and data center policy hits both companies' core expansion plans. This comes after SpaceX's strong Q3 (revenue $14.6B, net income $4.4B) and alongside the recently announced Tesla merger committees — political risk is now layered on top of an already volatile story.
At the time of this announcement, SPCX was trading at $136.30 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $1.9T. 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: Benzinga.