Elon Musk faces a new $28.5 trillion problem after Texas upset
Yahoo Finance ·
Elon Musk faces a new $28.5 trillion problem after Texas upset Faizan Farooque Thu, November 5, 2026 at 10:07 AM EST 1 min read SPCX -9.07% TSLA -9.37% This article first appeared on GuruFocus . Space Exploration Technologies Corp. ( SPCX , Financials ) shares fell 5.5% as Democratic victories in the U.S. midterm elections raised concerns about regulatory scrutiny and potential delays to the company's AI infrastructure expansion. Warning! GuruFocus has detected 3 Warning Sign with SPCX. Is SPCX fairly valued? Test your thesis with our free DCF calculator. Tesla shares also declined 5.1% following the election results. Democrats gained control of both chambers of Congress, while Gina Hinojosa defeated Republican Gov. Greg Abbott in Texas, where Musk maintains major business operations. Musk spent nearly $500 million supporting Republican candidates and political groups during the election cycle. The results could complicate his companies' relationships with regulators and lawmakers. Hinojosa has called for suspending new data-center projects until stronger protections address electricity costs, water consumption and community concerns. The proposal is particularly relevant to SpaceX's plans to expand its AI computing operations. SpaceX aims to increase computing capacity from 1.7 gigawatts at the end of September to as much as 3 gigawatts by year-end and 13 gigawatts in 2027. Research firm SemiAnalysis has identified more than 9 gigawatts of planned or developing capacity associated with the company. Democratic lawmakers may also examine Musk's government contracts and his previous role in the Department of Government Efficiency. No statewide data-center moratorium has been enacted, and the financial impact remains uncertain. The next catalyst is whether Texas officials introduce restrictions affecting new facilities or Congress begins formal investigations into Musk's businesses.
DYAX Investor Sentiment
Bullish (Long) 66% · Bearish (Short) 34%
383 participants
Related News
- Are Big Tech stock buybacks officially dead?
- NVDA vs AMD: which stock has the better bounce setup
- Digital Transformation in Manufacturing - Global Strategic Business Report: Capitalize on a US$1.0 Trillion Market by 2030 as Siemens, ABB, Microsoft, Rockwell Automation and SAP Reshape Industry
- China’s Moonshot AI seeks Nvidia Blackwell access in Europe, CNBC reports
- Digital Transformation in BFSI - Global Strategic Business Report: Secure Your Share of US$220.2 Billion by 2030 as Accenture, AWS, IBM, Microsoft, and Oracle Accelerate AI-Led Disruption
- AMD Tumbles 13%, NVIDIA Slides 7% as AI Regulation Fears Hit Chip Stocks; Intel Sinks 8%
