Musk’s Texas Election Loss Puts Tesla and SpaceX in Focus
Tesla and SpaceX shares fell after Democrats won key Texas races, raising questions about regulatory scrutiny and project approvals.
Key takeaways
- Tesla and SpaceX shares fell around 5% at Wednesday’s market open, according to Business Insider.
- James Talarico defeated Ken Paxton in the Texas Senate race, while Gina Hinojosa defeated Greg Abbott for governor.
- Musk contributed an estimated $446 million to Republican candidates and groups ahead of the election.
- Hinojosa has called for a halt to new data centre projects until lawmakers strengthen local protections.
Tesla and SpaceX shares fell around 5% at Wednesday’s market open after Democrats won key Texas races, according to Business Insider. James Talarico defeated Ken Paxton in the Senate race, and Gina Hinojosa beat Greg Abbott in the governor’s race.
Tesla was trading at $389.66, down 2.22% from the previous close, as of 19:35 UTC Wednesday. Business Insider reported that the two companies’ combined market value had fallen by more than $100 billion at the open.
Musk spent about $224 million backing Republican candidates in Texas, according to figures cited by Business Insider. Across the election, he contributed an estimated $446 million to Republican candidates and groups, according to the BBC.
The election outcome may bring closer scrutiny of the companies and their projects. Hinojosa has called for an immediate pause on new data centre projects until lawmakers strengthen protections for local communities, and has opposed a potential sale of a beachfront state park to SpaceX.
Analysts also warned that Democratic wins could slow approvals for data centres. Jake Dollarhide of Longbow Asset Management said a Democratic sweep could bring regulatory pressure on technology and AI.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
