SpaceX shares fall about 6% as Democratic midterm gains loom
SpaceX (SPCX) traded near $133.03 on Nov 4, down about 6% intraday, after projected Democratic midterm wins. More than one billion shares also became eligible for sale in late October. No regulatory action against the company has been announced.
SpaceX (Nasdaq: SPCX) traded at $133.03 in morning trading on Nov 4, 2026, down about 6% from a prior close of $141.31. The move coincided with projected Democratic wins in the Nov 3 midterms, which 24/7 Wall St. links to merger and regulatory risk. Newly sellable shares may also be weighing on the stock. No specific regulatory action against SpaceX has been confirmed.
What happened
The price comes from a 24/7 Wall St. article published at 8:49am ET, so it is an intraday figure. Tesla (TSLA) traded at $378.20 in the same session, down about 5% from a prior close of $398.50. General Motors rose about 2% to $89.90, and Ford rose about 2% to $12.51. Major US indexes pointed higher, so the two Musk companies moved against the market.
Democrats were projected to win both the House and Senate, according to Bloomberg, which cited Decision Desk HQ. These are projections, not final results. Per Bloomberg, Tesla and SpaceX first slid after the market close on Nov 3, when Sen. Jon Ossoff was projected to win reelection in Georgia. Selling grew as Democratic gains firmed up.
Why investors are reacting
Bloomberg reported, citing people familiar with the matter, a push to announce a Tesla-SpaceX deal in the first half of 2027. The aim is to close it while President Trump is in office. Talks are described as exploratory.
Vikram Rai of First New York told Bloomberg that an empowered Democratic Congress may be able to slow such a deal, though it cannot end it alone. Barclays estimates Musk would hold 56% of voting rights in a combined entity against 37% of shares. 24/7 Wall St. says lawmakers could scrutinize that gap.
Data centers are a second angle. 24/7 Wall St. reports that Democrat Gina Hinojosa defeated Gov. Greg Abbott in Texas and has called for a moratorium on new data-center development. Musk then said orbital data centers were looking 'pretty appealing right now'. SpaceX is pursuing orbital AI infrastructure. SpaceX's business spans rocket launches, Starlink connectivity and artificial intelligence.
Context
The election is only part of the story. 24/7 Wall St. reports that more than one billion SpaceX shares became eligible for sale in late October after IPO restrictions expired. It also says SPCX is down 12% over the past week.
Wikipedia, citing CNBC and Fortune, reports that SpaceX priced its IPO at $135 per share on June 11, 2026, and began trading on Nasdaq on June 12. This has not been checked against the S-1. At $133.03 intraday, the stock is below that reported IPO price. Bloomberg, via 24/7 Wall St., puts the market valuation at about $1.9 trillion after the June IPO.
What is not known
24/7 Wall St. gives 6% in its body but 8% in its summary box. The two prices cited imply a drop of about 5.9%, so this brief uses about 6%, as of the morning of Nov 4.
None of the sources reviewed reports an investigation or contract change affecting SpaceX. A snippet-only report of a senator's inquiry into Starlink was not verified. Final election results were not confirmed in the sources reviewed.
What to watch
Key items are certified election results, any announcement on the Tesla-SpaceX talks, and any congressional inquiry into SpaceX. The price may also reflect how newly sellable shares are absorbed.