Shares of Elon Musk's Tesla and SpaceX declined in premarket trading on Wednesday after Democrats swept control of both chambers of the US Congress.
Tesla shares dropped about 5%, and SpaceX fell 6.9%, driven by investor concerns regarding tighter AI regulations and potential regulatory hurdles for a merger.
The Democratic sweep in Texas specifically impacted Musk's operations, as the state serves as headquarters and facility base for both companies, including the Colossus 3 data center.