Elon Musk’s net worth falls $79.7B from Tesla and SpaceX drops while other Big Tech stocks rallied

Key Points:

• Elon Musk experienced a massive paper wealth loss of approximately $113 billion over two days following the midterm elections, as Tesla and SpaceX shares dropped significantly, erasing about $456 billion in combined market capitalization.
• Investor concerns stem from anticipated increased scrutiny by the new Democrat-controlled Congress into Musk's political donations, his involvement with Dogecoin (DOGE), and SpaceX's federal contracts, with promises of investigations into potential conflicts of interest.
• Despite the selloff, analysts suggest the market reaction was a "knee-jerk" response, noting that President Trump’s veto power and a Republican-majority FCC may limit the impact of Democratic oversight on Musk’s companies.
• Analysts caution that a Tesla-SpaceX merger faces regulatory challenges, especially with Texas turning more politically competitive, and that longer-term risks to Musk’s ventures and AI development hinge on the 2028 presidential election outcome.
• Musk’s ambitious plans for SpaceX’s data center expansion aim to significantly increase compute capacity by 2027, potentially outpacing historical growth benchmarks, though political gridlock currently tempers immediate regulatory threats.