The billionaire’s estimated fortune declined sharply Wednesday as investors reassessed regulatory and political risks facing his companies following Democratic victories in Congress and Texas, where Musk spent hundreds of millions supporting Republicans.
By yourNEWS Media Newsroom
NEW YORK — Elon Musk’s estimated net worth fell by approximately $33 billion Wednesday, Nov. 4, as shares of Tesla and SpaceX declined following sweeping Democratic victories in the U.S. midterm elections, delivering a financial setback to the billionaire after he spent nearly half a billion dollars supporting Republican candidates.
Both companies lost more than 3% of their market value during Wednesday’s trading, erasing nearly $100 billion in combined valuation, according to Business Insider.
The Bloomberg Billionaires Index estimated Musk’s remaining fortune at approximately $865 billion, leaving him the world’s richest person despite the decline. His estimated wealth remained roughly $490 billion greater than that of Amazon founder Jeff Bezos, whose fortune stood near $375 billion.
The losses came as investors considered the implications of Democratic control of both chambers of Congress and the party’s unexpected victories in Texas, where Musk has concentrated substantial business operations and political spending.
According to Reuters, Musk spent nearly $450 million supporting Republican candidates and political organizations during the 2026 election cycle.
More than $200 million was directed toward Texas, where Musk backed Republican candidates seeking to preserve the party’s longstanding control of statewide offices.
Those investments failed to prevent Democratic victories in the state’s gubernatorial and U.S. Senate elections.
Democrat Gina Hinojosa defeated Republican Gov. Greg Abbott, while Democrat James Talarico won the Senate contest against Republican Ken Paxton.
The results created new uncertainty for Musk’s businesses, including Tesla’s Gigafactory near Austin, SpaceX’s Starship operations at Starbase and proposed semiconductor and artificial intelligence infrastructure projects.
The political changes are particularly significant because Hinojosa has advocated restrictions on new data centers, citing concerns about electricity demand, water consumption and local communities.
Musk’s companies have invested heavily in artificial intelligence infrastructure, including plans for advanced semiconductor manufacturing and large computing facilities.
According to Forbes, Musk’s estimated wealth declined by approximately $35.2 billion during the first half-hour of Wednesday’s trading as Tesla and SpaceX shares fell sharply.
The differing estimates reflect changes in share prices throughout the session and the valuation methods used by financial publications.
Tesla shares fell approximately 3%, while SpaceX declined more than 3%, even as broader U.S. stock indexes advanced following the election results.
The contrast highlighted investor concerns specific to Musk’s companies rather than a general market selloff.
The Dow Jones Industrial Average surged more than 1,500 points Wednesday as investors anticipated possible changes in federal economic policy, lower energy prices and increased congressional oversight of the Trump administration.
Musk’s businesses, however, faced questions about their relationships with federal agencies and the potential consequences of Democratic legislative control.
SpaceX receives substantial government contracts involving military satellites, space transportation and other aerospace programs. Tesla also operates in industries affected by federal transportation, energy and environmental policies.
Democratic congressional committees could increase scrutiny of federal contracts, regulatory decisions and Musk’s previous involvement in the Trump administration.
According to NPR, Democrats have expressed interest in examining Musk’s government relationships and the possible conflicts of interest involving his private companies.
Musk previously served as a prominent adviser to Trump and participated in the Department of Government Efficiency initiative before leaving that role.
Although he later experienced disagreements with the president, Musk resumed substantial financial support for Republican candidates during the midterm campaign.
He also used his social media platform X to encourage voters to support Republicans.
The election outcome raised questions about the political influence of wealthy donors, particularly in races where Musk committed unusually large amounts of money.
In Texas, Democratic Senate candidate Talarico criticized Musk’s campaign spending and portrayed the contest as a struggle over political influence.
“We are going up against our own Goliaths — those billionaire megadonors, those corporate PACs, the entire Washington D.C. establishment,” Talarico said during the campaign, according to The Washington Post.
Following his victory, Talarico again criticized wealthy political donors, arguing that election outcomes should not be determined by campaign contributions.
Musk responded to the Republican defeats with a joking comment on X.
“Guess my election-interfering space lasers didn’t work this time,” he wrote.
Beyond the immediate political consequences, investors are evaluating the potential effect of tighter regulatory scrutiny on a possible combination of Musk’s companies.
Market analysts have discussed the prospect of a merger involving Tesla and SpaceX, although no definitive transaction has been announced.
Kathleen Brooks, research director at brokerage firm XTB, said Democratic control of Congress could complicate such a deal.
“While Congress cannot stop a merger between SpaceX and Tesla, they could slow it down via extra scrutiny,” Brooks said, according to Dow Jones Newswires.
“There is now a political risk premium attached to both Tesla and SpaceX that could weigh on their share prices,” she added.
The concerns extend to artificial intelligence development, where Musk’s businesses face growing competition and substantial infrastructure costs.
Investors have also become increasingly sensitive to the financial demands of data centers, electricity generation and advanced computing technology.
Democratic victories in several states have raised the possibility of additional restrictions on large data center developments, particularly where residents have opposed projects because of their potential effects on electricity prices, water supplies and land use.
Such changes could affect Musk’s planned technology investments, although their ultimate impact will depend on legislation, regulatory decisions and corporate responses.
The stock market losses also illustrate how changes in company valuations can produce large fluctuations in the wealth of individuals whose fortunes are concentrated in corporate ownership.
Musk’s reported $33 billion decline represents a reduction in the estimated market value of his holdings rather than an equivalent amount of cash withdrawn from his accounts.
His wealth remains primarily tied to ownership interests in Tesla, SpaceX and other technology ventures, making his estimated fortune especially sensitive to market movements.
Shares of both companies continued facing selling pressure early Thursday, raising the possibility of additional changes in Musk’s estimated wealth as trading progressed.
The election results do not automatically alter existing government contracts or establish new restrictions on Musk’s businesses. Any congressional investigations, legislative changes or state-level regulatory actions would require additional proceedings.
Nevertheless, Wednesday’s market reaction demonstrated that investors were reassessing the financial and political environment surrounding Musk’s companies following the Republican defeat.
Despite losing an estimated $33 billion in a single day, Musk remained the world’s wealthiest individual, while the future performance of Tesla and SpaceX will depend on corporate results, market conditions and the regulatory decisions made by the incoming Democratic congressional majority and newly elected state governments.
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