Shares of Elon Musk’s Tesla and SpaceX tumble after Republicans routed in midterms

Elon Musk-backed Republican candidates lost in the US midterms, with Democrats winning both chambers of Congress and the Texas governorship. Musk, who spent $500M supporting Republicans, faces increased scrutiny from Democrats, who may probe his companies. Shares of SpaceX and Tesla fell 5.5% and 5.1%, respectively, as regulatory pressure on tech and data centers looms.

Tesla opened a new engineering center in Berlin, investing €100M. The facility will initially employ 250 staff, expanding to 500. It will focus on materials, powertrain, and vehicle engineering, with safety testing capabilities. The company also plans to double production at its nearby Grünheide factory to 1M vehicles annually.

Goldman Sachs and Apollo are discussing the sale of parts of a $40 billion chip financing deal for SpaceX, according to sources. The deal, structured to avoid adding debt to SpaceX's balance sheet, is the largest of its kind for GPUs. Investors are being approached to buy portions before the official syndication process. The financing was announced in October, exposing lenders to market risks amid AI trade uncertainties and political shifts.

Tesla has secured a design patent for the Model S's body, covering its exterior look. Filed in May 2025, the patent protects the design until 2041. Tesla discontinued the Model S and Model X to free up factory space for Optimus. The company plans to open-source the models' engineering documents and software, despite the design patent.

SpaceX shares fell 2% after Democrats' midterm wins and Texas election results threatened data center growth. Analysts warn of reduced revenue, as SpaceX's bull case relies heavily on data centers. Elon Musk hinted at space-based solutions. Tesla also dropped 3%, with both companies considering a merger.

Tesla faces allegations in South Korea of misleading customers about the legality of its 'Full Self-Driving' (FSD) system, which cannot be legally used in most China-manufactured vehicles sold there. An advocacy group plans to file a complaint with the Korean Fair Trade Commission, claiming deceptive marketing. Tesla sold over 170,000 China-made vehicles in South Korea since 2023, with 99% ineligible for FSD in 2023. Tesla charges $6,726 for FSD activation, despite legal restrictions.