Tesla and SpaceX lose over $420B in combined market cap in the two days

Tesla and SpaceX lost a combined $469 billion in market value over two days after Democrats won Texas and a congressional majority in the midterm elections. Tesla fell 3.3% Wednesday and another 10.77% Thursday, while SpaceX dropped 3.8% and then 9%, cutting Elon Musk's personal stake—35% of SpaceX and 11% of Tesla—by roughly $189 billion. Markets read the result as raising regulatory risk for Musk's empire, which has relied on Texas's lax tax regime and AI-friendly rules and on SpaceX's role as NASA's primary supplier. Analysts cited by Bloomberg expect a Democratic Congress to tighten oversight of AI and complicate a potential Tesla-SpaceX integration. Musk donated nearly $450 million to Republican candidates, about $205 million of it in Texas, and new governor Gina Hinojosa campaigned on greater control of data centers. Watch whether Texas policy shifts and congressional scrutiny follow through on the market's reaction.