Elon Musk-led Space Exploration Technologies Corp. (NASDAQ:SPCX) and Tesla Inc. (NASDAQ:TSLA) shares were down as midterm election results cast doubts over AI buildouts and more.
SPCX, Tesla Decline
According to Benzinga Pro data, SPCX shares were down 4.15% to $135.45 in overnight trading on Tuesday, while TSLA shares slipped 4.43% to $380.84 during overnight trading on Tuesday.
Democrats Flip Texas
According to AP News data, Democratic Party’s Senate nominee James Talarico secured a victory in the Texas Senate race against GOP candidate Ken Paxton, who was backed by Musk after the billionaire reportedly spent $158 million in the run-up to November 3rd.
Musk had called Talarico a “far left extremist” who would “abolish” democracy in the U.S., while Talarico criticized Musk, saying taxpayer dollars funded Tesla’s success, referring to the 2010 $465 million Department of Energy (DOE) loan that Tesla paid off in 2013.
Investor Grant Cardone warned that Talarico’s win could pose problems for SpaceX and AI, referring to Talarico’s stance on compute, which also includes the framing of an AI dividend for Americans.
Talarico became the first Democrat to win a U.S. Senate seat in Texas since 1988, when Lloyd Bentsen won reelection, according to a report by The Wall Street Journal.
AP News data also showed that Democratic gubernatorial candidate Gina Hinojosa secured a victory over Gov. Greg Abott (R-TX) in the midterm elections. Hinojosa’s victory has cast doubt on AI data center buildouts after she had advocated for a data center moratorium.
Notably, both SpaceX and Tesla are headquartered in Texas, with Musk moving the EV giant’s HQ to Austin in early 2020s, while SpaceX’s Starbase was officially incorporated as a city in Texas in May last year.
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