StocksMediumUpdated•Originally published 5 November 2026•Updated 5 November 2026•
1 min read
Tesla and SpaceX Shares Fall on Merger Concerns Following Democratic Congressional Sweep
Key Facts
1Tesla and SpaceX shares fell by 9% following midterm election results in Texas.
2Rocket Lab and AST SpaceMobile shares tumbled 13% amid concerns over regulatory threats to data center plans.
Tesla and SpaceX shares fell 9% as a Democratic sweep of the House and Senate intensified concerns over regulatory hurdles. According to 247wallst.com, the election results fueled investor fears that potential mergers between the two companies could be blocked, alongside new restrictions on regional data center projects.
Tesla closed at $385.19 and SPCX closed at $135.92 on November 4, 2026, while RKLB and ASTS ended the session at $52.37 and $35.62 respectively following a 13% drop. These declines occur as SpaceX's AI Solutions & Infrastructure segment reported $7.60 billion in Q3 2026 revenue, highlighting the importance of AI infrastructure to the affected firms' growth strategies.