Tesla and SpaceX shares slip after Democratic midterm gains

Shares of Tesla Inc. and Space Exploration Technologies Corp. each declined roughly 1.8% in after-hours trading on November 3 as early US midterm election returns pointed to Democratic wins, Bloomberg reported. The drop followed an early projection that Senator Jon Ossoff had won reelection in Georgia. Decision Desk HQ later projected Democrats would control both the House and Senate.

Elon Musk, who controls both companies, contributed close to $450 million to Republican causes before the vote and urged his 240 million followers on X against backing Democrats. Investors have been weighing an exploratory combination of the electric-vehicle maker and the rocket and satellite company; Bloomberg has reported a push to announce a deal in the first half of 2027 so it could be completed during President Donald Trump's term.

Congress cannot block a transaction on its own, but a strengthened Democratic majority could delay it, said Vikram Rai of First New York. Tesla stock had climbed 34% from its late-July low. SpaceX, which went public in June 2026 and draws billions of dollars from federal contracts, carries a $1.9 trillion market value and has traded flat since the listing.

"Ahead of elections, narratives and emotion are significant factors, but once they are behind us, fundamentals and reality take control," said Mark Hackett, chief strategist at Nationwide Funds Group.

This story was first reported by Bloomberg.