‘The nail that sticks out gets hammered first’: Elon Musk’s net worth falls $113 billion from Tesla and SpaceX drops

The day after Democrats took control in the midterms, Wall Street experienced a rollercoaster of emotions. While the Dow rose by 3% on Wednesday, marking its best performance post-midterms in 44 years, investors quickly undid those gains on Thursday. Stocks related to artificial intelligence, including AMD and Micron, saw significant drops, contributing to a 2.9% overall decline in the Dow.

However, for Elon Musk, whose political leanings reportedly leaned Republican, the losses began immediately and escalated further. On Wednesday, Tesla and SpaceX shares plummeted by 3.3% and 3.8%, respectively, erasing a substantial portion of Musk's net worth. By the end of the two days, Musk's fortune had taken a staggering $113 billion hit, with Tesla and SpaceX's market caps shrinking to $1.36 trillion and $1.68 trillion, respectively, from their respective highs of $3.5 trillion and $1.68 trillion.

Investors are concerned that the new Congress may scrutinize Musk's ties to DOGE and potential conflicts of interest, particularly regarding SpaceX's federal contracts. Despite the initial panic, some analysts believe this was a knee-jerk reaction, and Musk's influence may not be as severe as it seems. However, concerns about potential regulatory actions, especially in the AI sector, remain, particularly if Democrats gain control of the White House in the next two years.