Midterms: Republican setback causes Elon Musk's companies to lose more than $150 billion

Hundreds of billions of dollars evaporated in a matter of hours. The two listed companies led by Elon Musk, Space Yielding 3.46% and 3.78% respectively at the opening of trading on Wall Street, they lost nearly 159 billion in valuation in one day.

The dropping of the two flagships of the Musk empire is part of a movement of distrust that has spread across the entire technology sector. After two years of strongly deregulatory policy under Donald Trump, the overwhelming victory of the Democrats suggests a change of course in Washington. The party has in fact made restricting the development of data centers and the fight against “the tech oligarchy” two of its main campaign arguments. Thus, the semiconductor manufacturers, essential to the operation of these infrastructures, Nvidia and Intel, respectively lost 1.08% and 2.99% at the opening of trade.

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“Space lasers”

The Democratic triumph in Texas, a traditional bastion of the Republican Party, further weakens Elon Musk and partly explains the decline of his companies. The billionaire close to Donald Trump has made the lone-star state his industrial base, where he owns nearly 500 properties, including Tesla's headquarters in Austin, SpaceX's Starbase production and launch site as well as numerous factories. A true entrepreneurial kingdom that Gina Hinojosa, elected governor of Texas last night, intends to bring into line. The Democrat has made Elon Musk one of her recurring targets, notably opposing the transfer of public land to SpaceX and aid granted to the businessman's companies, while calling for a moratorium on the construction of new data centers in the state.