Image Source: The New York Times
Elon Musk net worth has fallen below $800 billion after Tesla and SpaceX suffered a combined market-value loss of more than $420 billion in the two trading sessions following the 2026 U.S. midterm elections.
Tesla shares dropped about 11% on Thursday, while SpaceX shares declined roughly 9% amid a broader technology sell-off. Investors are increasingly concerned that Musk and his companies could face congressional investigations, tougher regulation and delays to ambitious artificial intelligence and data-center projects.
Elon Musk Net Worth Falls as Tesla and SpaceX Slide
The sharp decline has significantly affected Musk’s personal fortune. According to Forbes, his wealth had topped $1 trillion after SpaceX’s initial public offering in June. However, he reportedly lost approximately $90 billion during the past week, leaving him with a fortune below $800 billion.
Musk remains the world’s richest person despite the dramatic decline. His wealth is closely tied to his ownership stakes in Tesla, SpaceX and other ventures, meaning large market swings can quickly change his position among the world’s billionaires.
SpaceX and Tesla had lost approximately $456 billion in combined market capitalization by the close of Thursday’s trading session. The companies’ declines came as investors reassessed the political environment surrounding Musk’s businesses.
Powerful Political Backing Brings New Scrutiny
Musk was the largest individual donor to Republican candidates and political causes during the midterm elections. His contributions reportedly exceeded $470 million, according to the Financial Times.
Despite that spending, many of the candidates he supported were defeated. Democrats won control of both the House and Senate, creating the possibility of increased oversight of Musk’s businesses and government relationships.
The political shift was especially important in Texas, where Tesla and SpaceX have major operations. Democrat James Talarico won the race for U.S. Senate, while Gina Hinojosa won the governor’s race. Both defeated political allies of Musk, including Texas Attorney General Ken Paxton and Governor Greg Abbott.
The results could influence decisions involving energy use, water consumption, tax incentives, artificial intelligence infrastructure and large-scale industrial development.
Critical Texas Data-Center Projects Face Uncertainty
Tesla and SpaceX are expanding their artificial intelligence infrastructure in Texas. The companies are planning Terafab, a huge development in Grimes County that is expected to include a data center and a large semiconductor manufacturing facility.
SpaceX also plans to build a supercomputer at Starbase, its launch facility and company town in South Texas. The projects would require substantial electricity, water and construction resources, making them vulnerable to regulatory changes under the incoming administration.
Deutsche Bank analysts said SpaceX could face additional headwinds following the election. They noted that Texas’ governor-elect had made data centers a central campaign issue and had called for a pause on new approvals until lawmakers adopt stronger protections covering water use, electricity costs, local authority and tax incentives.
The analysts warned that tighter rules could delay SpaceX’s planned computing capacity and increase capital expenditures. If new approvals take longer or construction requirements become more expensive, the company may need to commit substantially more money before its artificial intelligence ambitions begin generating returns.
Merger Plans and Starlink Questions Add Pressure
Regulatory scrutiny could also complicate Musk’s proposal to combine Tesla and SpaceX. Musk has promoted the idea, although such a transaction would require shareholder approval and would likely receive close attention from regulators.
Separately, Musk and SpaceX have reportedly been instructed to preserve records connected to restrictions on a military version of Starlink in Ukraine. CNN reported that the restrictions affected Ukraine’s ability to defend itself against Russian attacks. The matter could become part of broader congressional inquiries after Democrats take control of both chambers.
For investors, the uncertainty extends beyond one company or one election cycle. Tesla faces questions about its future growth and artificial intelligence strategy, while SpaceX must balance satellite operations, launch programs and expensive computing projects. Any regulatory action could affect spending plans, timelines and future valuations.
What the Drop Means for Elon Musk’s Fortune
The latest decline does not necessarily mean Musk has permanently lost his position as the world’s richest person. Much of his fortune remains connected to privately held SpaceX, Tesla stock and other assets whose values can change rapidly.
Still, the market reaction shows how closely his personal wealth is linked to political developments and investor confidence. The election results have created a new risk landscape for Musk, particularly in Texas, where several of his most ambitious projects are being developed.
As congressional investigations, state-level policy debates and potential regulatory reviews unfold, Musk’s wealth may remain unusually volatile. For shareholders and communities hosting his companies, the next phase could bring both major opportunities and significant challenges.
Frequently Asked Questions
What is Elon Musk’s net worth now?
According to the figures cited in the report, Elon Musk’s fortune fell below $800 billion after he lost about $90 billion during the week. He remained the world’s richest person.
Why did Elon Musk’s net worth decline?
The decline was mainly linked to falling valuations for Tesla and SpaceX. The companies lost more than $420 billion in combined market value after the midterm elections.
How did the midterm elections affect Musk’s companies?
Democrats won control of the House and Senate, while Democratic candidates won key races in Texas. Investors expect the political change could bring more investigations and stricter regulation.
Could regulation affect SpaceX and Tesla projects?
Yes. Proposed rules involving water use, electricity costs, tax incentives and local approval processes could delay or increase the cost of data centers and artificial intelligence infrastructure.
