Musk's wealth falls by about Rs 10 lakh crore after US midterms, with probe risk ahead

The United States recently held midterm elections, in which President Donald Trump's Republican Party suffered a major setback. The blow did not stop at the party. Elon Musk, the world's richest man, has also been hit.

In just two days, Musk's wealth fell considerably, by about Rs 10 lakh crore.

Another outcome of the election is that Democrats won a majority in both houses of Congress. This poses a further big threat to Musk, as his company may now face investigation.

After the election, the market capitalisation of Musk's Tesla and SpaceX fell by Rs 42.9 trillion. As a result, his personal net worth declined by more than Rs 10 trillion. However, shares of Musk's company rallied again on Friday, and his net worth rose substantially.

The Democratic Party could also examine the government contracts of Musk's companies, their business interests and their ties with the Trump administration.

Over the past 13 years, Musk has given Rs 69 billion, roughly $1.6 billion, to Trump's party. Musk's companies then received several government contracts during Trump's second term. As a result, they could now come under Democratic fire. Democrats have promised to investigate these contracts and the funding. Elon Musk's companies will therefore have to face all this.

The contracts and orders that could be examined include military satellite launches, satellites that track threats, a satellite network for the armed forces, 18 rocket launches and space station missions.

One more point is worth noting. Musk had left California and made Texas his new home. But Democrats have now won there, and Musk could face difficulties there as well.