Tesla and SpaceX Have Lost $457 Billion in Two Days
Tesla (TSLA) and SpaceX (SPCX) lost $457B in market value from Nov 3-5, 2026, due to political shifts in Texas. TSLA fell 13.75% and SPCX dropped 12.52%. Both companies face potential regulatory risks from new leadership. SpaceX's credit default swaps hit a record high, indicating rising perceived risk. TSLA's valuation is seen as vulnerable to political setbacks.
How this was made
The 30-second read
Why it matters
Both companies experienced significant price drops and widening credit spreads, reflecting heightened political and regulatory risk.
Market read
The selloff adds to market volatility and may influence risk sentiment in AI‑hardware and aerospace sectors.
What to watch
SpaceX's strong cash position and profitable Starlink business could cushion the impact despite credit spread widening.
Background
The article details a $457 billion market‑value loss for Elon Musk’s two largest public companies following the U.S. midterm elections and new Texas political actions.
Ticker impact
Tesla fell 13.75% over two sessions, losing about $217 billion after the election and political risk concerns.
likely further downside if the stock breaks below its 52‑week low of $297.38.
The selloff is driven by fresh political developments and widening credit spreads, indicating continued risk.
SpaceX dropped 12.52%, shedding about $240 billion as its debt insurance spreads widened to a record 284.3 bps.
likely further decline if spreads remain elevated or political threats to its Texas data‑center persist.
Record CDS spreads and political actions against its Texas project suggest heightened credit concerns.
Market effects
AI‑related hardware and data‑center sectors may face heightened risk perception.
Texas‑based tech and aerospace stocks could see broader pressure.
The selloff contributes to overall market volatility amid election‑driven political risk.
Counterpoint
If political risk eases, the sharp decline may present a buying opportunity for long‑term investors.
Key entities
- IndividualElon Musk
CEO of Tesla and founder of SpaceX, whose political spending is under scrutiny.
- PoliticianGina Hinojosa
New Texas governor-elect threatening data‑center projects tied to Tesla and SpaceX.
