Shares in Musk's SpaceX plunge as tech and AI stocks fall

What the report says

Shares tied to Elon Musk’s SpaceX fell sharply on Thursday as a wider sell-off hit technology and artificial intelligence stocks, according to BBC World News. The move came after Democrats won key races in the U.S. midterm elections, which the market interpreted as a sign that data centre projects and AI firms could face closer scrutiny. The BBC said concerns were especially focused on states with major data centre activity, including Texas.

The downturn pushed the Nasdaq Composite lower, at one point by more than 5% in early trading, while the broader S&P 500 also dropped. SpaceX shares were down by more than 9% at lunchtime, and Tesla shares fell by more than 11%. Other chipmakers also declined, including AMD, Intel and Nvidia, as investors sold off parts of the AI and semiconductor trade.

BBC World News reported that the political shift in Texas was notable because Musk had backed Republican campaigns there, while Texas governor-elect Gina Hinojosa campaigned against new data centre construction and promised a moratorium on the sector. The report also said some industry leaders have begun to acknowledge the need to explain AI and data centre projects more clearly to local communities.

The episode matters because it shows how election results, regulation risks and investor doubts about the scale of AI spending can quickly affect market valuations. Some investors are also questioning whether the AI boom has run ahead of fundamentals, adding to volatility across U.S. markets.