Musk loses $113B as Tesla and SpaceX stocks plummet

Big Tech rallies after midterms

The Dow rose 3% on Wednesday, its best performance after a midterm in 44 years. Amazon jumped 6.1% and Apple rose 5.3%, while the S&P 500 grew 1.6%.

Musk's companies diverge sharply

Tesla shares fell 3.3% and SpaceX fell 3.8% on Wednesday's close, underperforming the broader market. Musk lost $33.5 billion of his paper wealth that single day.

Thursday's selloff accelerates losses

On Thursday, Musk lost another $79.7 billion as Tesla and SpaceX shares continued falling. His two-day loss totalled about $113 billion as of market close on November 5.

Combined market cap collapses

Tesla and SpaceX had a combined market cap of about $3.5 trillion on Tuesday night. By Thursday night it fell to $3.04 trillion, wiping out about $456 billion in total value.

Political spending draws scrutiny

Musk spent an estimated $427.5 million to $483 million backing Republicans. Democrats have signalled they want to investigate his involvement with DOGE and potential conflicts of interest from SpaceX's federal contracts.

The nail that sticks out

Keith Snyder, senior equity analyst at CFRA Research, said Musk has stuck out especially in government through donations, the election, and his DOGE involvement.

“The nail that sticks out gets hammered first, and Musk has certainly stuck out, especially in government, whether it be donations, the election, and any of the feathers he ruffled while he was at DOGE.”

Trump's veto power limits damage

Snyder said the selloff was a knee-jerk reaction, noting Trump retains veto power over major AI restrictions and remains friendly toward Musk. The FCC has a Republican majority.

Real risk emerges in 2029

Snyder said the greater risk comes if Democrats win the White House in two years. Political gridlock until then means the real test for AI companies arrives in twenty twenty-nine.