Tesla makes electric cars. SpaceX makes rockets. Both companies are linked to Elon Musk. On November 5, shares in both companies fell a lot. The fall came after the 2026 midterm elections in the United States. The two companies lost more than $420 billion in value together.
What Happened
The midterm elections are held in the middle of a president’s term. Voters choose members of Congress. Congress is the group that makes laws in the United States. In this election, Democrats won control of the House and the Senate. Texas also flipped to blue. That means Democrats won there. On Thursday afternoon, SpaceX shares fell by about 9%. Tesla shares fell by about 11%. A share is a small piece of a company. The two companies had already lost value since Tuesday. By Thursday afternoon, their combined loss was more than $420 billion. By the close of trading on Thursday, the loss was about $456 billion. Market cap means the total value of a company’s shares. When shares fall, market cap falls too.
Key Figures
- About 11%: the fall in Tesla shares on Thursday afternoon.
- About 9%: the fall in SpaceX shares on Thursday afternoon.
- More than $420 billion: the combined value lost by the two companies since Tuesday’s close.
- About $456 billion: the combined loss by the close of trading on Thursday.
- More than $470 million: the money Musk gave to Republican causes, according to the Financial Times.
Why It Happened
Musk was the biggest donor to Republican causes in the election. He gave more than $470 million. Most of the candidates he backed lost. Investors watched the results closely. They worried the new Congress could change rules for big projects. SpaceX and Tesla both have big plans. SpaceX is working on data centers and a deal with Qualcomm. Tesla is working on new cars and technology. When investors feel unsure, they often sell shares. Tech shares fell more broadly on Thursday too.
Why It Matters
A fall of more than $420 billion is very large. It shows how fast share prices can move after an election. Many people own Tesla shares. Some own them in pension funds or savings plans. A pension fund is a pot of money saved for retirement. When Tesla shares fall, those savings can fall too. SpaceX has been in the news before. It teamed up with Qualcomm to build mobile network gear. Investors will watch both companies closely now.
What Happens Next
Investors will watch what the new Congress does next. They will watch plans for data centers and new technology. They will also watch Tesla’s car sales and SpaceX’s next steps. Share prices can rise or fall fast after big news. The next few days will show if the fall was short or if it lasts longer.
Final Thoughts
Elections can move markets. This week, they moved Tesla and SpaceX shares down a lot. The numbers are big, but the story is simple. Investors felt unsure, and they sold. Time will tell if the companies bounce back.
Quick Questions
What is market cap?
Market cap means the total value of a company’s shares. When shares fall, market cap falls too.
Why did Tesla and SpaceX shares fall?
They fell after the 2026 midterm elections. Democrats won control of the House and the Senate, and investors felt unsure.
What are the midterm elections?
The midterm elections are held in the middle of a president’s term. Voters choose members of Congress, the group that makes laws.
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.
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