Tesla and SpaceX shares fell up to 6 percent in pre-market trading on Wednesday as Democrats swept to control of Congress in the US, raising concerns among investors over the political and regulatory outlook for companies backed by billionaire Elon Musk.
At around 6:15 pm IST, Tesla shares were trading at USD 375.75 on the Nasdaq, down 5.71 percent. SpaceX shares also declined 5.67 percent to USD 133.30.
The selling came amid investor concerns over the possibility of tighter regulations around artificial intelligence (AI). Both companies are expanding their presence in the AI sector, while a potential mega-merger between Tesla and SpaceX could also attract regulatory scrutiny.
Access to a military version of SpaceX's Starlink satellite service has also emerged as a point of tension involving the US, Ukraine and Russia.
Musk had contributed nearly Rs 4,000 crore to Republican Party funds and urged his 240 million followers on social media platform X to vote against Democrats.