Texas election results trigger share declines for Tesla and SpaceX

The losses followed reports that Elon Musk invested over $200 million in an effort to maintain Republican control in Texas.

Shares of Tesla and SpaceX fell by more than 4% in premarket trading. The Texas results included James Talarico’s victory over Republican Ken Paxton for a Senate seat and Gina Hinojosa’s defeat of Greg Abbott, who held the position of governor.

According to The New York Times, Musk’s spending on Republican candidates in Texas reached approximately $224 million, with $158 million spent in September alone.

If these share declines persist when the market opens, the combined market value of Tesla and SpaceX could decrease by more than $140 billion.

Musk relocated SpaceX’s headquarters from California in 2024, citing concerns about state lawmakers. Tesla operates a gigafactory in Austin, Texas, and its robotaxi service is active in multiple Texas cities. SpaceX launches its Starship rocket from its Starbase facility in Boca Chica, near the Mexican border.

Wedbush analyst Dan Ives noted that Musk must now navigate a relationship with Texas officials following the Democratic victories.

Musk contributed at least $446 million to Republican candidates and organizations prior to the election. Talarico publicly criticized Musk in his victory speech.

Musk responded to the election results on X, suggesting that SpaceX’s plan to build data centers in space is now more attractive. He also posted, “Guess my election-interfering space lasers didn’t work this time.”