Tesla and SpaceX shares fall, erasing over $420 billion in combined market value
Musk's personal wealth has dropped below $800 billion after topping $1 trillion in June, according to Forbes.
Tesla shares fell about 9% and SpaceX shares fell about 11% on Thursday afternoon. Investors worried that Elon Musk, CEO of both companies, could face new congressional probes and tougher regulation after the midterm elections. The two companies lost more than $420 billion in combined market value since Tuesday's close.
Musk's wealth had topped $1 trillion after SpaceX's IPO in June. According to Forbes, it is now below $800 billion after falling about $90 billion in the past week. He remains the richest person in the world. Musk was the largest donor to GOP candidates in the midterms, giving more than $470 million, but most candidates he backed lost.
Deutsche Bank analysts said SpaceX could face headwinds from stricter data center rules, particularly in Texas, where both companies are building AI infrastructure. Regulatory scrutiny could also block a merger of SpaceX and Tesla that Musk has proposed. Separately, Musk and SpaceX were instructed to preserve records about restrictions placed on a military version of Starlink in Ukraine.
Key points
- Tesla fell about 9%, SpaceX about 11% on Thursday
- More than $420 billion lost in combined market value
- Musk's net worth is below $800 billion, per Forbes
- Deutsche Bank flags possible data center rules and merger risks
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Summarized with AI from the sources above and reviewed before publishing.
