Why are SpaceX and Tesla shares crashing

SpaceX (NASDAQ: SPCX ) and Tesla (NASDAQ: TSLA) shares fell sharply in premarket trading on Wednesday, November 4, as investors reacted to Democrats’ sweeping victories in the 2026 U.S. midterm elections. SpaceX shares closed the previous session at $141.31 before dropping to $131.85 in premarket trading, representing a decline of 6.69%. Tesla stock fell 5.50% from its previous close of $398.50 to $376.59. The declines came despite a relatively positive reaction across the broader U.S. stock market, suggesting that investors were primarily reassessing risks associated with Musk’s business empire rather than responding to a wider market sell-off. Why Musk stocks are crashing The main catalyst behind the declines was Democrats’ victory in both chambers of Congress, raising concerns about increased scrutiny of Musk’s businesses.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to Finbold.