US midterms rattle AI markets and Tesla-SpaceX
BBC Technology reported that Democratic gains in the US midterms contributed to a sharp AI-related technology selloff as investors considered tighter regulation of data centers and AI investment. cnBeta reported that Tesla and SpaceX fell about 11% and 9%, respectively, losing a combined market value of roughly $456 billion as regulatory scrutiny and concerns about their preliminary merger discussions increased. Texas Governor-elect Gina Hinojosa also called for pausing approvals for new data centers until stronger protections for local communities are established.
The political shift created a concrete regulatory risk for major AI infrastructure projects and closely watched companies, while reports linked the election result to a substantial market-value decline.