# Musk loses $113B as Tesla and SpaceX stocks plummet

> After backing Republicans with $427.5M to $483M, Musk's companies underperformed while Big Tech rallied, erasing $456B in combined market value in 48 hours.
- Title: Musk loses $113B as Tesla and SpaceX stocks plummet · Fortune
- Summary: After backing Republicans with $427.5M to $483M, Musk's companies underperformed while Big Tech rallied, erasing $456B in combined market value in 48 hours.
- Keywords: elon musk, tesla, spacex, stock market, midterm elections, republican backing, democratic scrutiny, federal contracts, Fortune
- Source: Fortune — https://fortune.com/2026/11/06/elon-musk-midterms-spacex-tesla-stock-drop
- Author: Mia Osmonbekov
- Read time: 1 min
- Topics: elon musk, tesla, spacex, stock market, midterm elections, republican backing, democratic scrutiny, federal contracts
## 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.
## Key takeaway

Elon Musk lost $113 billion in two days as Tesla and SpaceX shares fell sharply while other tech stocks surged, amid investor fears of Democratic scrutiny over his political spending and government ties.