SpaceX and Tesla plummet for the second day... Market cap 500 trillion won ↓

The stock prices of Space

This is due to growing concerns that data center construction may slow down due to the Democratic Party's victory in the U.S. midterm elections.

On this day, Tesla fell 10.8% and SpaceX fell 9.1% on the New York stock market, falling for the second day. The two-day decline rate amounts to 13.8% for Tesla and 12.5% ​​for SpaceX.

SpaceX's closing price ($123.62) fell below the public offering price ($135) at the time of listing last June.

Based on the closing price, the market capitalization of the two companies decreased by around $370 billion (approximately 505 trillion won) this week.

Reuters reported that the fact that the Democratic Party won the senatorial, governor, and prosecutor general elections on the 3rd in Texas, where both companies are headquartered, was a burden.

The explanation is that as data center regulation has become a political issue in Texas, Musk's support for the Republican Party has come to the fore, reflecting concerns that oversight of the business may be strengthened.

Reuters reported that Space

Goldman Sachs estimated that the Democratic Party's state and local election victories could lead to a short-term halt in data center construction, affecting approximately 45% of planned capacity for U.S. data center expansion.

There is also a cloud over the prospects for the merger of the two companies.

“We believe the merger will happen, but the new ‘blue’ political landscape in Washington and Texas makes the regulatory path to completion next year much more difficult,” said Dan Ives, a partner at Yorkville Ives & Co.