SpaceX, Tesla and AI stocks fall after Democrats win Senate and House in US midterms

The Democratic Party won control of both the Senate and the House of Representatives in the US midterm elections. Soon afterwards, shares of some big technology companies fell in the stock market. Elon Musk's SpaceX and Tesla took the biggest hit.

On the European platform Tradegate, SpaceX shares dropped about 5 per cent after the results. Tesla shares fell by about 4.5 to 5 per cent. Musk had given large financial support to Republican Party candidates before the election. The Democrats' win has now changed the political equations in the US.

Musk is considered close to Trump. He poured a great deal of money into this election and also distributed shares of his company on the occasion. Despite this, he faced a crushing defeat in the election. After that, matters between Musk and Trump also began to turn, and the stir in the American business world grew.

Investor concern is a major reason for the fall. It is being said that after the Democrats' win, government scrutiny of artificial intelligence (AI) and data centre industries could increase. Data centres need electricity, water, infrastructure and heavy investment. Demands for tighter control over all of these could arise. Out of this fear, shares of some AI and data centre companies also fell, and investors appeared to be treading carefully.

There is also the question of what impact this will have on Musk's business empire. Both SpaceX and Tesla have important ties to government policies, regulatory approvals and large projects. With the Democrats' grip on Congress now stronger, Musk's companies' government contracts and proposed merger plans are likely to face greater scrutiny.

For this reason, uncertainty has arisen among investors about the companies' future business decisions. For now, the market is watching what stance the government takes towards the tech and AI sectors in the new political picture.