Elon Musk loses $29 billion after Democratic US midterm sweep

American billionaire Elon Musk lost $29 billion following the announcement of early results from the US congressional midterm elections.

Alphaville, an analysis blog operated by the Financial Times, pointed to the night of 3 November into 4 November, when the US congressional midterms were held, describing Musk as “the real loser of a night that had a lot of losers”.

According to initial data, the Democratic Party gained the upper hand in the elections, taking control of both chambers of Congress: the House of Representatives and the Senate.

As reported by Bloomberg, shares in SpaceX, one of the companies forming the core of Musk’s wealth, fell 6.9% in pre-market trading, while Tesla shares dropped 5%.

The agency noted that the Democratic victory could deal a double blow to investors in Tesla and SpaceX.

Tesla shares had climbed 34% since late July, buoyed by interest in artificial intelligence products and the possibility of a merger with SpaceX.

Under current conditions, however, investors fear tighter regulatory oversight in the artificial intelligence sector.

It is also noted that the Democratic victory could complicate a potential merger between the two companies.

The Financial Times reported that while Democrats lack the authority to block a merger deal outright, they could subject the transaction to tighter, more detailed scrutiny.

Bloomberg pointed out that few major corporate executives have forged ties with US President Donald Trump and the Republican MAGA movement as close as Musk’s.

According to data reported by The Washington Post, Musk spent $446 million backing Republican candidates ahead of the midterms to help the party preserve its majority in Congress.

The billionaire also urged his 240 million followers on the social media platform X not to vote for Democrats.

The newspaper wrote that a significant portion of those funds went to the Senate race in Texas, the state where Musk resides.

In recent years, Musk also relocated his core assets and business operations to the state; both Tesla and SpaceX are currently headquartered in Texas.

Shares in Musk’s companies have previously experienced volatility in response to political developments.

Following Trump’s re-election as president in 2024, Tesla shares surged more than 90% in just over a month, but those gains were gradually erased amid deteriorating relations between the billionaire and the president, as well as investor fatigue surrounding his activities at DOGE.

Nevertheless, the latest market decline is seen as potentially temporary; despite their concerns, investors continue to avoid underestimating Musk’s influence.

Meanwhile, according to early results from the 3 November midterms, the Democratic Party regained control of both houses of the US Congress.

Projections shared by NBC News indicate that Democrats could win 258 seats in the 435-member House of Representatives, where 218 seats are required for a majority.

In the Senate, Democrats have secured 54 seats compared to 44 for the Republicans.

The outcomes of two Senate races, in Mississippi and Alaska, have not yet been finalized.

The scale of the Democratic sweep was characterized across US media as a “blue tsunami”. The party won Senate races in seven states previously held by Republicans.

Within that tally, a Democrat secured Senate representation in Kansas for the first time in 94 years, while in Texas the party won both the Senate and gubernatorial races for the first time in decades.