A Hard Blow for Tesla and SpaceX: What Happened After Democrats Swept the Elections?

Tesla and SpaceX shares dropped yesterday after Democrats swept the midterm elections and took control of Congress and the House of Representatives, amid fears of stricter artificial intelligence regulation.

In yesterday's trading, Tesla stock closed down 3.34% at $385.19, while SpaceX shares fell 3.81% to $135.92.

Before election day, market watchers warned that Democratic dominance at the polls could enhance the party's ability to hinder AI development, scrutinize Musk's conduct, and obstruct the anticipated merger between Tesla and SpaceX. Additionally, winning control in Texas means Musk's political opponents now have an easier path to disrupt his operations, bypassing a potential veto from the Oval Office.

Voting results in the midterm elections, where Americans chose all 435 members of the House of Representatives and 35 senators, showed that Republicans lost control of Congress overall.