Elon Musk's political spending fails to deliver results as company shares decline
Following the defeat of several Republican candidates backed by Elon Musk, shares in Tesla and SpaceX have faced downward pressure on the stock market.
The 2026 U.S. midterm elections concluded with significant gains for the Democratic Party, complicating the political outlook for billionaire Elon Musk. Musk had reportedly funneled over $445 million into Republican-aligned campaigns, aiming to shift the balance of power, though these efforts ultimately failed to produce the anticipated electoral sweep.
Market response was swift as election results became clear. Shares of SpaceX saw an immediate drop from $142 to $133 by Wednesday morning. Tesla experienced a comparable decline, falling from $398 to $380 during the same period.
While both stocks saw minor fluctuations following the initial drop, they have stabilized at lower valuations than prior to the election. The market trend suggests that investors are increasingly sensitive to the intersection between Musk's high-profile political activities and the commercial operations of his publicly traded enterprises.