SpaceX and Tesla Face Pressure Following Midterm Election Sweep

By EC Assets · Published 4 November 2026

Shares tied to Elon Musk faced pressure on Wednesday following midterm election results, even as Morgan Stanley issued a bullish forecast for SpaceX. Tesla dropped 1.32 percent, while political shifts introduced fresh regulatory questions for key technology holdings. SpaceX moved lower alongside artificial intelligence data center stocks as a Texas gubernatorial outcome heightened concerns over potential project slowdowns. The pressure across Musk-led companies comes directly after U.S. midterm elections delivered sweeping victories for Democrats across the House and Senate. The election results marked significant losses for Republican candidates and raised immediate operational risks for tech billionaires. In Texas, the outcome of the gubernatorial race directly triggered market fears regarding regional slowdowns for AI data centers and SpaceX operations. Against this political backdrop, Morgan Stanley reiterated an optimistic valuation for Space Exploration Technologies, which trades under the ticker SPCX. The investment bank stated that SpaceX shares could nearly double to reach $300 per share. Analysts at the firm argued that public investors are currently overlooking a $100 billion bet and missing the broader scale of the emerging space economy. SpaceX has experienced notable market volatility following its initial public offering on June 12, 2026. After reaching an initial high of $225.64, the stock pulled back toward its debut level to trade near $140 per share, touching $137.95 during the retreat. Recent operational milestones have continued in tandem with the market swings; Starship's 13th test flight launched from Texas, deployed 20 Starlink V3 satellites, and completed its atmospheric reentry. The political sweep presents broader shifts for financial markets, with Democrats capturing majorities in both congressional chambers. While the broader S&P 500 managed a 0.36 percent gain amid the election outcomes, tech holdings linked to prominent political figures saw targeted selling. Investors are reassessing the regulatory and regional operating environment for high-growth sectors, particularly infrastructure tied to space exploration and power-intensive data facilities. Market participants are tracking the policy impact of the incoming congressional majorities as the newly elected legislative leadership takes shape. This article is intended for informational purposes only. It does not constitute investment advice.