Musk's $500M Midterm Spend Backfires: Only 3 Republicans Win, Shares Fall, Democrats Plan Investigations

Apple (AAPL) reported fiscal 2026 capex down 28.9% to $9.04B, with Q3 revenue up 11.7% to $114.48B. Tesla (TSLA) cut 2026 capex guidance to ~$20B, with flat Q3 revenue at $28.05B. Apple's cash flow is more stable due to subscriptions, while Tesla's spending is higher for future growth. Apple's shares are up 28.92% YTD, Tesla down 14.35%.

Tesla has launched its Cybercab fleet in metro Detroit for testing, featuring a distinctive design and autonomous capabilities. The vehicles are currently being tested with human drivers and have been spotted on major roads. Tesla plans to expand the service, but it faces a federal safety investigation. The Cybercab is part of Tesla's Robotaxi service, which is currently only open to the public in Austin, Texas.

Tesla faces a complaint in South Korea for selling Full Self-Driving (FSD) software to 99% of buyers whose cars cannot legally use it. A consumer group plans to file a complaint with the Korea Fair Trade Commission, seeking a halt to FSD marketing, fines, and an investigation. Tesla sold over 170,000 Shanghai-made cars in South Korea since 2023, with FSD sales growing over fivefold from 2023 to 2023.

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.