Tesla and SpaceX Lose $456 Billion in Two Days After Democrats' Midterm Sweep

Tesla and SpaceX lost about $456 billion in combined market value in just two trading sessions after Democrats won control of both chambers of Congress in the November 3 midterm elections, according to CNBC and Dow Jones Market Data. The slide was the worst single-day fall for both stocks since March 2020, and it wiped out a large share of the gains the two companies built up during 2026.

More than $420 billion of the loss came on Thursday, November 5, alone, measured from Tuesday's close. Tesla fell about 11 percent on Thursday and SpaceX about 9 percent, after both had already dropped on Wednesday. By the close of trading on Thursday, the two companies were worth roughly $456 billion less than they had been when the polls closed on Tuesday.

Key Points

• Tesla and SpaceX lost about $456 billion in combined market value by the close of trading on Thursday, November 5, 2026, in the two sessions after the Democrats' midterm sweep.
• More than $420 billion of the decline came during Thursday's session alone, measured from Tuesday's close.
• Tesla fell about 11% on Thursday to $343.69, down 13.8% from its November 3 close of $398.50, with its market value falling from about $1.575 trillion to about $1.361 trillion.
• SpaceX fell about 9% on Thursday to $123.62, down 12.5% from $141.31 on November 3, with its market value falling from about $1.92 trillion to about $1.71 trillion.
• It was the worst single-day decline for both stocks since March 2020, and Forbes reported Musk's net worth fell about $90 billion in a week to below $800 billion.

What Happened

The selling started on Wednesday, the first trading session after the midterm results, and gathered force on Thursday. Tesla dropped 3.3 percent on Wednesday and then about 11 percent on Thursday, closing at $343.69. That left the electric car maker down 13.8 percent from its November 3 close of $398.50, with about $214 billion of market value gone in two days.

SpaceX followed a similar path. The rocket and satellite company fell 3.8 percent on Wednesday and about 9 percent on Thursday, closing at $123.62. That was down 12.5 percent from $141.31 on November 3, taking about $210 billion off its market value as it fell from about $1.92 trillion to about $1.71 trillion.

The scale stood out even in a week of sharp swings across Wall Street. The two-day loss was larger than the entire market value of most companies listed on the New York Stock Exchange. How Wall Street bounced back on Friday.

Background: The Midterm Sweep and the Musk Factor

Democrats won both chambers of Congress in the November 3 midterms, a result that reshaped the political outlook for Elon Musk's companies almost overnight. Musk had spent about $474 million backing Republican candidates in the 2026 cycle, according to the New York Times, making him the largest individual donor of the election, and he had campaigned openly for Republican candidates on X.

Investors now fear a Democratic Congress will use its new majorities to investigate Musk, scrutinise his companies' government contracts, impose stricter regulation and slow data-centre construction. SpaceX holds major government contracts, including military and space work, while Tesla's driver-assistance technology and energy business both sit under federal oversight.

Tesla SpaceX $456 Billion Loss: What the Numbers Show

The figures show how fast the market repriced the two companies. Tesla's market capitalisation fell from about $1.575 trillion to about $1.361 trillion, a drop of about $214 billion, while SpaceX fell from about $1.92 trillion to about $1.71 trillion, a drop of about $210 billion. The figures are rounded, as reported by CNBC and Dow Jones Market Data.

The fall also hit Musk's personal fortune. Forbes reported his net worth fell about $90 billion in a week to below $800 billion, at about $789.5 billion. He passed $1 trillion only after SpaceX's June initial public offering, and despite the drop he remains the world's richest person by a wide margin.

Reactions and Quotes

The market reaction reflected a judgement about politics rather than about either company's operations. Neither Tesla nor SpaceX reported earnings or announced bad news during the two sessions, and no new product or launch problem emerged. The selling was driven by what investors think a Democratic Congress might do next, not by anything the companies did.

Musk himself had already felt the political turn. He deleted his Election Day post on X urging followers to vote red after the Democrats' victory, and he had spent the campaign warning that a Democratic Congress would target him and his companies. Why Musk deleted his 'Vote red today!' post.

Why It Matters

The sell-off matters because it shows how closely the market now ties the value of Musk's companies to politics. Tesla and SpaceX are no longer judged only on cars delivered, rockets launched or satellites in orbit. Their valuations carry a political premium built on the expectation of a friendly government, and the midterms removed a large part of that premium in two days.

It also matters for the wider market: the two companies are among the largest in the world, and their fall dragged on the Nasdaq, which had already entered correction territory. The same fears about regulation and data-centre spending weighed on other technology and artificial intelligence stocks, and the week ended with investors asking whether the AI boom had been priced for a political world that no longer exists.

What Happens Next

The new Congress will not be sworn in until January, so the immediate question is whether the selling continues or buyers step in. Friday brought some relief, with Tesla rising 4.8 percent as the wider market rebounded and the Nasdaq 100 jumped about 2 percent, its best session since September. That bounce suggests some investors see the two-day fall as an overreaction.

The longer test comes in January, when Democrats take the gavels and can open investigations, demand documents and call hearings on Musk's companies and their contracts. Tesla is meanwhile shifting its focus, with Musk saying Cybertruck production will wind down by mid-2027 to make room for the self-driving Cybercab. Tesla's Cybertruck wind-down in full.

Frequently Asked Questions

How much did Tesla and SpaceX lose?
About $456 billion in combined market value in the two trading sessions after the November 3 midterms, according to CNBC and Dow Jones Market Data, with more than $420 billion of it lost on Thursday alone.

How far did Tesla fall?
Tesla fell about 11% on Thursday to $343.69, down 13.8% from its November 3 close of $398.50, with its market value falling from about $1.575 trillion to about $1.361 trillion.

How far did SpaceX fall?
SpaceX fell about 9% on Thursday to $123.62, down 12.5% from $141.31 on November 3, with its market value falling from about $1.92 trillion to about $1.71 trillion.

Why did the stocks fall?
Investors fear a Democratic Congress will investigate Elon Musk, scrutinise his companies' government contracts, impose stricter regulation and slow data-centre construction.

How much is Elon Musk worth now?
About $789.5 billion, according to Forbes, down about $90 billion in a week to below $800 billion, though he remains the world's richest person.