Foreign media reported today: "Following the Republican Party’s defeat in the U.S. midterm elections, Elon Musk’s wealth has declined by more than $60 billion, despite his prior investment of approximately $446 million to help Republicans retain control of Congress. His political contributions were heavily concentrated in Texas, where the Republican Party suffered a significant setback. In early trading, Tesla shares fell 5.7%, and SpaceX’s valuation dropped 7.6%, further eroding Musk’s net worth. With a Democratic-controlled Congress expected before Donald Trump’s term ends in 2029, scrutiny over potential merger plans between Tesla and SpaceX may intensify."
Commentary: This decline in wealth largely reflects market pricing of regulatory risks—far beyond mere electoral outcomes. Investors recognize that with Democrats in control of Congress, Tesla’s autonomous driving safety protocols, SpaceX’s military contracts, and X’s content moderation practices are likely to face increased congressional hearings. The planned Tesla-SpaceX merger, previously anticipated before 2029, now faces prolonged approval timelines and heightened oversight. More pressing is the political shift in Musk’s base state of Texas, which has turned blue; the newly elected Democratic leadership shows cautious attitudes toward large-scale AI data centers and high-power consumption projects. Previously secured tax breaks and land-use incentives in Texas may now be subject to re-evaluation. While Musk is unlikely to disengage from politics entirely, this episode serves as a reminder that betting heavily on a single party ties the fate of a corporate empire too closely to election results—a high-risk strategy. Going forward, he is likely to recalibrate his approach, seeking strategic balance across both parties to reduce reliance on any one political alignment.
Original source: toutiao.com/article/1880943531557961/
Disclaimer: The views expressed in this article are those of the author alone.