Tesla and SpaceX lose over 420 billion dollars in market cap

Tesla and SpaceX lost more than 420 billion dollars in combined market capitalization following the United States midterm elections. CNBC Environment and CNBC reported that shares in SpaceX and Tesla declined by about 9 percent and 11 percent, respectively, on Thursday afternoon. CleanTechnica, CNBC TV18, and Tokenpost also reported the combined market capitalization loss of over 420 billion dollars. Tech Insider reported a loss of 456 billion dollars over two days. [1][2][6][8][9][10]

Investors expressed concern that Chief Executive Officer Elon Musk could face new congressional probes and that his companies could face stricter regulation following the election results. CNBC Environment reported that the stock declines coincided with a broader technology sell-off across the markets. TradingView reported that Nvidia lost 440 billion dollars as the Nasdaq index fell by 5.5 percent during the market downturn. [2][7]

As FTMQ Climate reported earlier, Musk spent 366 million dollars on political campaigns during the 2026 United States midterm elections while his companies maintained significant federal connections. SpaceX received at least 6.78 billion dollars in federal contract work through October 1, 2026. Tesla recorded third quarter sales of 28.05 billion dollars, down from 28.1 billion dollars in the same period a year earlier. Special committees at Tesla and SpaceX have also been evaluating a potential merger valued at 3.5 trillion dollars. [14][15]

Market capitalization represents the total value of a publicly traded company's outstanding common shares owned by stockholders. CleanTechnica reported that both Tesla and SpaceX received early structural support from the Obama administration and a Democrat-controlled Congress during their initial growth phases. [1][11]