Tesla and SpaceX Shares Fall After Midterm Elections

Tesla and SpaceX shares fell sharply on Thursday, November 5, extending declines after Democrats won control of Congress in the U.S. midterm elections. Tesla closed at $343.69, down $41.50, or nearly 11%. SpaceX shares fell about 9%, according to one report, as the two companies’ combined market value dropped by more than $420 billion from Tuesday’s close, according to another account. The market decline came during a broader selloff in technology stocks. Investors were weighing possible regulatory scrutiny and the impact of political changes on the companies, which are both led by Elon Musk. Those explanations are investor interpretations; the reports do not establish that the election caused the share-price moves. Texas also drew attention because Tesla and SpaceX are headquartered there and are expanding artificial-intelligence infrastructure. Democrat Gina Hinojosa, projected to win the state’s governorship, has supported a moratorium on new data centers. A separate report said her campaign focused on pausing new approvals until lawmakers adopt stronger protections concerning water use, electricity costs, local control and incentives. The state’s data-center policies could...