Musk businesses brace for fallout after Republican midterm losses
What's new: Tesla fell 5.1% and SpaceX dropped 5.5% as investors weighed tougher scrutiny of AI data centers and federal contracts.
Elon Musk's business empire is facing political and market blowback after Republican losses in the US midterms, a setback for one of the party's biggest donors. Musk spent nearly half a billion dollars backing Republican candidates and keeping Texas red, where Tesla and SpaceX have major operations and a planned chipmaking venture. The Business Times reported Tesla shares fell 5.1% and SpaceX dropped 5.5%. Analysts and experts expect Democrats to tighten scrutiny of data center projects, potentially slowing approvals as local opposition grows over electricity costs. Musk also faces pressure over satellite communications used by Ukraine's military, federal job cuts at the Department of Government Efficiency, and government contracts and subsidies tied to his companies.