Musk loses $79.7 billion in a day as SpaceX falls below its IPO price and Tesla drops 10.8%
Both stocks fell for a second straight session after the midterms, and the Nasdaq fell 5.5%. Investors cite possible congressional probes and Texas data center rules, but no investigation of Musk has been announced.
Elon Musk's fortune fell by $79.7 billion on Thursday, November 5, to about $785 billion from about $865 billion a day earlier, according to the Bloomberg Billionaires Index figures reported by Billionaires.Africa. Forbes put the drop at about $80 billion, a fall of more than 9% that took him below $800 billion. The two indexes use different methods, but they agree on the size and direction of the move.
The cause was a plunge in two stocks that make up most of his wealth. By our calculation from Yahoo Finance daily closes, Tesla (TSLA) fell 10.8% on Thursday, to $343.69 from $385.19. SpaceX (SPCX) fell 9.05%, to $123.62 from $135.92. SpaceX now trades below the $135 price of its June IPO, as of Thursday's close.
The numbers, from the close
| Instrument | Nov 3 close | Nov 4 close | Nov 5 close | Nov 5 move |
|---|---|---|---|---|
| Tesla (TSLA) | $398.50 | $385.19 | $343.69 | -10.8% |
| SpaceX (SPCX) | $141.31 | $135.92 | $123.62 | -9.05% |
| Nvidia (NVDA) | $206.69 | $200.13 | $181.60 | -9.3% |
| Nasdaq Composite | 25,372 | 25,737 | 24,315 | -5.5% |
Closes are from Yahoo Finance daily data; percentages are our arithmetic. On Friday, Yahoo data shows SpaceX at $134.27, Tesla at $358.22 and the Nasdaq at 24,579, a partial rebound.
The Tuesday-to-Thursday damage is larger than the one-day headline. Both stocks fell on Wednesday, November 4, while the market was still near its highs. CNBC reported that the two companies had lost more than $420 billion in combined market value from Tuesday's close by Thursday afternoon, and about $456 billion by the close. Measured from the November 3 close, SpaceX is down 12.5% and Tesla 13.8%, against 4.2% for the Nasdaq. The Nasdaq's own drop on Thursday is covered in our global markets report.
What investors say is behind it
There are two explanations in the coverage, and they overlap. The first is the general tech rout. Forbes tied the decline to the market reaction to the election and to existing worries over heavy AI spending. Nvidia fell 9.3% on the day by our calculation, and Michael Dell, Larry Ellison, Mark Zuckerberg and Jensen Huang all lost billions, per Forbes.
The second is specific to Musk. CNBC said investors worry that he could face new congressional probes and tougher regulation, after Democrats won control of Congress. Musk was the largest donor to Republican candidates and causes this cycle. Estimates of his giving range from more than $445 million (Billionaires.Africa) to more than $470 million (the Financial Times, as cited by CNBC), and CNBC said most candidates he backed lost. Senator Ted Cruz of Texas said Democrats will use subpoenas "to go after Elon Musk," according to the Billionaires.Africa report.
On the word "retribution": neither the Forbes nor the CNBC article we read uses it, and neither says the selloff is payback. Both describe investor expectations of scrutiny. No investigation of Musk, Tesla or SpaceX has been announced in the reports we reviewed. CNBC, citing CNN, said Musk and SpaceX were told to preserve records about limits on a military version of Starlink in Ukraine, per a Democratic senator's aide. A records request is not a probe, and it is not a finding of wrongdoing.
The Texas data center angle
The more concrete risk is operational. CNBC reported that Deutsche Bank analysts said SpaceX could face "incremental headwinds," noting that Texas Governor-elect Gina Hinojosa made data centers a major campaign issue and called for a moratorium on new approvals until water, electricity cost and local control protections are strengthened. The analysts warned that SpaceX's Texas computing capacity could be delayed and that capital spending may need to rise. That is an analyst view, not a company statement.
It matters because SpaceX's AI business is large. In its third-quarter results it reported AI revenue of $7.56 billion, and it has taken on $40 billion of GPU debt. The planned Terafab site in Grimes County and the Starbase supercomputer are in Texas, per CNBC. For Tesla, the same week brought Musk's announcement that Cybertruck production will wind down in Texas around mid-2027.
What it does and does not change
Most of these figures are paper wealth, and they rise and fall with two share prices. Musk's SpaceX stake is nearly 50%, though Forbes notes much of it vests only on extreme performance targets, so the value counted on the lists is an estimate. Index providers also differ on how they count unvested and pledged holdings, which is why Forbes and Bloomberg do not match to the dollar.
CNBC also noted that scrutiny could complicate Musk's idea of merging SpaceX and Tesla, which would need shareholder approval; see our report on the merger special committees. For the full Tesla picture, see Tesla stock: what is going on.
What to watch: whether any committee actually announces a probe or hearing, Texas lawmakers' moves on data center permitting when the new governor takes office, and whether SpaceX can hold the $135 IPO level it lost on Thursday. Company filings are on SEC EDGAR for Tesla and SpaceX.
Sources: Bloomberg Billionaires Index figures as reported by Billionaires.Africa; Forbes via Yahoo Finance; CNBC; Yahoo Finance daily closes (our calculations); SEC EDGAR. Net worth figures are estimates. This is market information, not investment advice.
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