Tesla Shares Fall 4.4% as Democrats Surge in US Midterms
Tesla fell 4.4% in after-hours trading Tuesday as early midterm results pointed to a Democratic sweep, raising investor fears of probes into Elon Musk.
Tesla (TSLA) shares fell 4.4% to $381 in after-hours trading Tuesday as early US midterm results pointed to a Democratic sweep, with investors worried that a Democrat-controlled Congress could probe Elon Musk and his companies.
SpaceX, Musk's rocket company, fell 5.2% to $134 in the same session, and the Nasdaq Composite was down 2%.
The move followed a Politico report last month that Democratic lawmakers are lining up to probe Musk if they take control of the House. Their prime focus, according to the report, would be his brief stint leading the Department of Government Efficiency (DOGE) during the early days of President Donald Trump's second term. Rep. Pramila Jayapal (D-WA) told Politico that Musk's government contracts and his role at DOGE raised concerns about corruption, saying there are many parts of the corruption around Musk.
Investors also weighed Musk's political spending. He poured more than $445 million into helping GOP candidates win their midterm races, according to the same report.
Musk warned on X last week that Democratic control would mean making Washington, D.C. and Puerto Rico states, opening borders, and expanding the Supreme Court, which he said would produce a permanent one-party state. He urged readers to vote for Republican senators.
The selling extended a volatile stretch for Tesla, which had lost 1.32% on Monday as investors awaited the election results, according to Seoul Economic Daily.
In delayed trading on Wednesday, Tesla shares were down 1.3% at $398.50.
The next catalyst for the stock is the company's next earnings report; no date was given in the sources.