Tesla and SpaceX Lose Over $420 Billion in Market Value After US Midterm Elections

The two trading sessions following the 2026 United States midterm elections delivered a sharp blow to Elon Musk's business empire, with shares of Tesla and SpaceX collectively shedding more than $420 billion in market capitalisation. The sell-off, which unfolded amid political uncertainty and a broader technology-sector downturn, marked one of the most significant short-term value erosions in the history of Musk's companies.

Massive Two-Day Market Wipeout

According to multiple reports, investors aggressively sold shares of both companies after the election results became clear. By Thursday's market close, the combined market value lost by Tesla and SpaceX had exceeded $420 billion, with some estimates putting the figure at roughly $456 billion.

The declines were substantial:

• Tesla shares fell about 11% on Thursday and roughly 14% over the two trading sessions following Election Day.
• SpaceX shares dropped around 9% on Thursday and approximately 12% over the same period.

The sell-off erased hundreds of billions of dollars in shareholder value despite no major changes to the underlying operations of either company during those two days.

Why Investors Reacted So Sharply

Market participants appeared to focus largely on the political implications of the election outcome.

Democrats secured control of both the House of Representatives and the Senate, prompting concerns among investors that Musk and his companies could face increased scrutiny from lawmakers and regulators. Reports suggested that investors feared congressional investigations, tighter oversight and new regulatory hurdles for some of Musk's most ambitious projects.

Musk had been heavily involved in the election cycle. Reports stated that he was the largest donor to Republican candidates and causes during the midterms, contributing more than $470 million. Most of the candidates he backed were unsuccessful in their races.

The political shift was particularly notable in Texas, where both companies maintain major operations. According to reports, Democratic victories in statewide races added to concerns that future projects could encounter a less favourable regulatory environment.

Broader Technology Sell-Off Added Pressure

The market reaction was not solely political.

Both companies were affected by a wider decline across the technology sector. Reports noted that the share-price drops coincided with a significant sell-off in AI-related, semiconductor and data-centre stocks as investors reassessed future growth expectations and potential regulatory risks.

This broader market weakness amplified the pressure on two companies that have become central players in artificial intelligence, advanced computing and next-generation manufacturing.

Concerns Over AI and Infrastructure Projects

Analysts highlighted concerns about future infrastructure developments, particularly in Texas.

Tesla and SpaceX are planning major AI and computing investments in the state, including a large project known as Terafab, which is expected to house data-centre and semiconductor-manufacturing operations. Reports also noted that SpaceX plans to develop a supercomputer at its Starbase facility in Texas.

Analysts from Deutsche Bank suggested that policy changes and stricter regulations concerning data-centre development could create additional challenges and delays for these projects.

Impact on Elon Musk's Wealth

The stock declines also affected Musk's personal fortune.

According to reports citing Forbes, Musk's net worth had exceeded $1 trillion after SpaceX's public listing earlier in 2026. However, following the recent market declines, his fortune fell below the $800 billion mark, representing a reduction of roughly $90 billion within a week. Despite the drop, he remained the world's richest person.

What Happens Next?

While the market reaction has been dramatic, the long-term implications remain uncertain.

Investors are now watching whether the new political landscape leads to increased oversight of Musk's businesses, especially regarding artificial intelligence infrastructure, data-centre construction, regulatory approvals and potential strategic initiatives involving his companies. Reports indicate that these concerns, rather than any immediate deterioration in business fundamentals, were the primary drivers of the recent sell-off.

For now, the episode serves as a reminder of how quickly market sentiment can shift when politics, regulation and investor expectations collide. In just two days, one of the world's most influential business leaders saw more than $420 billion in value disappear from his flagship companies, underscoring the extraordinary sensitivity of modern markets to political and regulatory risk.

Amazon’s India Business To Valued At $16 Bn, To Reach $70 Bn in GMV By 2027

Within a few weeks after Walmart announced acquiring an initial stake of about 77 percent in Flipkart, India's top e-commerce company, for $16 billion, US-based technology giant Amazon’s India business could be valued at $16 billion right now and is expected to reach $70 billion in gross merchandise volume (GMV) and $11 billion in net sales by 2027, according to a report by Citi Research released last week.

"We believe the India e-commerce market will grow at a 21% CAGR over the next 10 years to $202bn, that Amazon could capture 35% of this market. ... That suggests that Amazon India could be currently worth $16bn," Citi’s senior analyst Mark May said in a note to clients Thursday. "In short, not only do we believe that investors continue to under-estimate the value of Amazon's existing Emerging International Retail Markets businesses, but also the pace and value of its recent international expansion efforts."

A valuation of $16 billion makes the business worth more than 170 companies in the S&P 500, including Clorox, Macy's and Tiffany & Co.

Notably, Amazon has committed to spending $5 billion to build its business in India, whose population of 1.3 billion makes it the world's second-largest country.

Amazon's investments in India have been consistent with a strategy for long-term success. For instance, the company has aggressively built out its distribution network to service the third-party sellers and customers it serves in the market.

Speaking about Indian ecommerce market, it is currently pegged at $30 billion and is expected to be worth $200 billion by calendar year 2026, according to a report by investment bank Morgan Stanley.

It is also to be noted that this valuation of Amazon's India business is not based on a transaction like the Flipkart-Walmart deal, it would probably make Amazon India the second-most valued internet business in the country after it’s rival Flipkart.

Amazon’s main India unit Amazon Seller Services posted a 41% rise in FY'17 revenue to Rs 3,128 crore, according to filings before the Registrar of Companies. Amazon Internet Services, the re-seller for cloud business under Amazon Web Services (AWS) in India, saw its revenues grow to $406 million (about Rs 2,636 crore) in December 2017 from $307 million (about Rs 1,993 crore) a year earlier, according to the regulatory filing.

Flipkart, including its subsidiaries -- Myntra and Jabong, had a combined market share of 39.1%, and Amazon India 31.1%, according to Forrester Research. Alibaba and SoftBank-backed Paytm Mall had a market share of about 5.6% in 2017, it’s first full year of operations.

Recently, it was also reported that the e-commerce arm of India’s payment giant PayTM — PayTM Mall, is expected to raise $600 million from Japan’s Softbank.

Meanwhile, social networking giant Facebook has also announced that it is on verge of launching its own e-commerce platform, and is currently in talks with several brands and businesses in India to list on Facebook Marketplace. It will begin testing business-to-consumer (B2C) transactions on the marketplace this month ahead of a soft launch planned for June.

Via - Economic Times

Amazon’s India Business To Valued At $16 Bn, To Reach $70 Bn in GMV By 2027

Within a few weeks after Walmart announced acquiring an initial stake of about 77 percent in Flipkart, India's top e-commerce company, for $16 billion, US-based technology giant Amazon’s India business could be valued at $16 billion right now and is expected to reach $70 billion in gross merchandise volume (GMV) and $11 billion in net sales by 2027, according to a report by Citi Research released last week.

"We believe the India e-commerce market will grow at a 21% CAGR over the next 10 years to $202bn, that Amazon could capture 35% of this market. ... That suggests that Amazon India could be currently worth $16bn," Citi’s senior analyst Mark May said in a note to clients Thursday. "In short, not only do we believe that investors continue to under-estimate the value of Amazon's existing Emerging International Retail Markets businesses, but also the pace and value of its recent international expansion efforts."

A valuation of $16 billion makes the business worth more than 170 companies in the S&P 500, including Clorox, Macy's and Tiffany & Co.

Notably, Amazon has committed to spending $5 billion to build its business in India, whose population of 1.3 billion makes it the world's second-largest country.

Amazon's investments in India have been consistent with a strategy for long-term success. For instance, the company has aggressively built out its distribution network to service the third-party sellers and customers it serves in the market.

Speaking about Indian ecommerce market, it is currently pegged at $30 billion and is expected to be worth $200 billion by calendar year 2026, according to a report by investment bank Morgan Stanley.

It is also to be noted that this valuation of Amazon's India business is not based on a transaction like the Flipkart-Walmart deal, it would probably make Amazon India the second-most valued internet business in the country after it’s rival Flipkart.

Amazon’s main India unit Amazon Seller Services posted a 41% rise in FY'17 revenue to Rs 3,128 crore, according to filings before the Registrar of Companies. Amazon Internet Services, the re-seller for cloud business under Amazon Web Services (AWS) in India, saw its revenues grow to $406 million (about Rs 2,636 crore) in December 2017 from $307 million (about Rs 1,993 crore) a year earlier, according to the regulatory filing.

Flipkart, including its subsidiaries -- Myntra and Jabong, had a combined market share of 39.1%, and Amazon India 31.1%, according to Forrester Research. Alibaba and SoftBank-backed Paytm Mall had a market share of about 5.6% in 2017, it’s first full year of operations.

Recently, it was also reported that the e-commerce arm of India’s payment giant PayTM — PayTM Mall, is expected to raise $600 million from Japan’s Softbank.

Meanwhile, social networking giant Facebook has also announced that it is on verge of launching its own e-commerce platform, and is currently in talks with several brands and businesses in India to list on Facebook Marketplace. It will begin testing business-to-consumer (B2C) transactions on the marketplace this month ahead of a soft launch planned for June.

Via - Economic Times