Tesla and SpaceX Stocks Fall as Investors Worry About Elon Musk’s Political Risk

Tesla and SpaceX shares fell on Wednesday even as U.S. stocks rallied after Democrats won both chambers of Congress and the Texas governor’s race. Tesla traded at $379 before the opening bell, down 4.89%, while SpaceX dropped 5.67% to $133.30 in premarket trading, below its $135 June listing price. Before the vote, Musk gave at least $446 million to Republican candidates and groups, and Democratic lawmakers are reportedly weighing probes into his businesses, which Democrats have previously scrutinized over federal contracts and subsidies. In Texas, Democrat Gina Hinojosa unseated Gov. Greg Abbott and wants to stop new data centers and their tax breaks, affecting SpaceX’s planned AI computing site at Starbase near Boca Chica.