Tesla and SpaceX Market Value Drops $450 Billion Amid Political Shifts and AI Selloff
Tesla (TSLA) and SpaceX (SPCX) have experienced a significant market downturn following the recent elections, resulting in a combined loss of approximately $450 billion in market value. Tesla's valuation fell by 14% to roughly $342 per share, while SpaceX saw a 12% decline, bringing its trading price below its June IPO level. The selloff is largely attributed to political uncertainty, as Democrats now control both chambers of Congress, raising concerns about potential regulatory scrutiny of Elon Musk's ventures. Additionally, a broader market retreat in AI and semiconductor stocks has impacted these companies, particularly SpaceX, which holds a massive $40 billion commitment for AI chips. Despite the volatility, analysts note that neither company's core business fundamentals have changed this week. Tesla continues to focus on its long-term robotaxi ambitions, while SpaceX maintains strong operating income from its launch and Starlink businesses, even as it navigates a shifting regulatory landscape.