Musk-led Tesla, SpaceX slide as Texas turns blue

Space Exploration Technologies

Wed 12:01

** Shares of Elon Musk-led Tesla TSLA.O and SpaceX SPCX.O slide premarket after Democrats sweep Congress in US midterm elections
** TSLA down 4.8% at $380.67 and SPCX retreats 4.4% to $135.11
** Democrats scored a historic breakthrough in Republican stronghold Texas, home to both companies
** Federal filings show that Musk contributed $158 million to the Senate Leadership Fund to help keep Texas red 
** The Republican loss in Texas threatens to weaken Musk's political influence in his adopted home state, where he has expanded his business interests and cultivated ties with GOP leaders
** A Democratic shift could complicate TSLA's and SPCX's expansion plans, particularly amid Democratic calls for tighter data-centre regulation and an end to tax incentives 
** "The blue tsunami could put a putative Tesla-SpaceX merger on ice," said Saxo Bank strategist Neil Wilson
** "Data centers in space looking pretty appealing right now," Musk posted on X on Wednesday after results
** As of last close, TSLA down over 11% YTD and SPCX up 4.67% from its IPO in June

 (Reporting by Jayasree Prabhu)
 ((jayasree.prabhu@thomsonreuters.com))