Shares in Elon Musk’s companies fall following Democratic gains in the US

Following the Democrats' success in the US midterm congressional elections, the share prices of companies owned by Elon Musk—Tesla and SpaceX—have declined.

Reports indicate that in off-exchange trading, Tesla shares fell by 3.5%, while SpaceX shares dropped by 3.6%. During the election campaign, Musk emerged as the largest financial backer of the Republican Party, spending at least $446 million in support of the Republicans.

Kathleen Brooks, Director of Research at the trading platform XTB, noted that the Democratic victory could complicate Musk’s plans to integrate his companies, Tesla and SpaceX. She suggests that Congress might slow down this process by initiating additional investigations.

Another factor causing concern among investors is that Musk has based the core of his business operations in the state of Texas, where he has also been an active supporter of the Republican Party.