Investors weigh political scrutiny, AI infrastructure risks and the uncertain path toward combining Musk’s companies.
Tesla and SpaceX extended their losses Thursday as investors assessed the implications of Democratic election victories. Reuters reported Tesla down more than 11% and SpaceX nearly 9% during the November 5 session, amid concerns about data center expansion and oversight.
The election also changed expectations for a possible merger. Analyst Dan Ives said the political shift in Washington and Texas could complicate the regulatory process. His assessment reflects an anticipated obstacle as the companies explore their options.
Merger discussions were already underway before voters went to the polls. Reuters reported October 22 that advisers had been hired and talks remained at an early stage. Options under discussion included an acquisition of Tesla by SpaceX or a combination through a new holding company.
Those negotiations also carry corporate governance questions. Musk leads both businesses and holds substantial stakes in each. Independent committees have been examining the potential transaction, while some people involved in the discussions expressed concern that his public comments could complicate the process, Reuters reported.
Analysts differ on the likely political impact. CFRA’s Keith Snyder told Fortune that investors may be overestimating Democrats’ immediate ability to constrain the companies, pointing to President Donald Trump’s veto power and Republican control of the Federal Communications Commission.
By early Friday, SpaceX shares were recovering some ground, according to Investor’s Business Daily. The rebound followed the steep declines, while the potential merger and the companies’ Texas expansion plans continued to face questions about timing and oversight.
THE INFORMANT
THE POSTELECTION SELL-OFF
Tesla and SpaceX closing prices · November 3–5, 2026
TESLA · TSLA
−13.75%
Cumulative change from Nov. 3 close
SPACEX · SPCX
−12.52%
Cumulative change from Nov. 3 close
| Date | Tesla | SpaceX |
|---|---|---|
| Nov. 3 Election Day · Baseline | $398.50 | $141.31 |
| Nov. 4 | $385.19 | $135.92 |
| Nov. 5 | $343.69 | $123.62 |
Historical snapshot through November 5, 2026. Cumulative change = (November 5 close ÷ November 3 close − 1) × 100. Percentages rounded to two decimal places. This block contains fixed historical data.
Sources · Stock Analysis Tesla history · SpaceX history
