Tesla and SpaceX have shed nearly $500 billion in combined market value, landing among the hardest-hit firms during a sharp post-election selloff across the technology sector. Elon Musk lost nearly $500 million in a failed attempt to sway outcomes in the 2026 midterm election, while his flagship companies faced immediate double-digit declines on public markets.
Tesla shares fell more than 14 percent over a two-day period, erasing roughly $220 billion from the automaker's valuation. SpaceX experienced a similar trajectory, slipping 12.5 percent within 48 hours to wipe out $240 billion in value. The downturn pushed SpaceX share prices below their initial public offering price from earlier in the year. While broader markets initially showed resilience—with the Dow recording strong post-midterm numbers—the Nasdaq entered correction territory by dropping nearly four percent.
The market correction reflects a broader reckoning for Big Tech and artificial intelligence infrastructure. Investors are recalibrating as the strategy of infinite spending faces scrutiny, punctuated by voter rejection of data centers at the ballot box. Nvidia dropped almost 10 percent, while other AI-related firms faced steep double-digit losses. Industry analysts suggest the market downturn could provide hyperscalers with an external excuse to scale back trillions in AI infrastructure commitments, even as Wall Street reacts to looming political probes and regulatory accountability targeting major technology corporations.
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