Musk’s fortune evaporated by over $100 billion in two days. What happened?
On November 6, Beijing time, data from Forbes and Bloomberg showed that Musk’s personal wealth had fallen below $800 billion. Since the U.S. midterm elections, his net worth has shrunk by more than $100 billion in total, including a loss of about $91.2 billion in a single day on Thursday.
The immediate cause was a sharp drop in Tesla and SpaceX shares. The two companies lost a combined total of more than $450 billion in market value over two days.
At the heart of the decline is the impact of political risk. Musk is a major Republican donor, having contributed more than $470 million, but Democrats ultimately took control of both the House and the Senate. The market is concerned that Musk’s companies could face tighter regulation and congressional investigations, particularly his plans to expand AI data centers and chip factories in Texas, which may encounter policy hurdles. After Texas “turned blue,” the new governor called for a pause on approvals for new data centers, directly threatening SpaceX and Tesla’s local operations.
In my view, this drop in wealth isn’t due to problems with the companies’ fundamentals; rather, the market is repricing “political uncertainty.” Musk is still the world’s richest person, with a net worth about $420 billion greater than that of runner-up Jeff Bezos. But the real variable to watch is whether regulators take substantive action. In the short term, sentiment is driving down valuations; over the long term, it remains to be seen whether the policies will actually be implemented.
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$BTC #中期选举 $TSLAB $SPCXB
This is an objective summary of publicly available information and relevant mechanisms, and does not constitute investment advice.
On November 6, Beijing time, data from Forbes and Bloomberg showed that Musk’s personal wealth had fallen below $800 billion. Since the U.S. midterm elections, his net worth has shrunk by more than $100 billion in total, including a loss of about $91.2 billion in a single day on Thursday.
The immediate cause was a sharp drop in Tesla and SpaceX shares. The two companies lost a combined total of more than $450 billion in market value over two days.
At the heart of the decline is the impact of political risk. Musk is a major Republican donor, having contributed more than $470 million, but Democrats ultimately took control of both the House and the Senate. The market is concerned that Musk’s companies could face tighter regulation and congressional investigations, particularly his plans to expand AI data centers and chip factories in Texas, which may encounter policy hurdles. After Texas “turned blue,” the new governor called for a pause on approvals for new data centers, directly threatening SpaceX and Tesla’s local operations.
In my view, this drop in wealth isn’t due to problems with the companies’ fundamentals; rather, the market is repricing “political uncertainty.” Musk is still the world’s richest person, with a net worth about $420 billion greater than that of runner-up Jeff Bezos. But the real variable to watch is whether regulators take substantive action. In the short term, sentiment is driving down valuations; over the long term, it remains to be seen whether the policies will actually be implemented.
If you’d like to keep up with developments like this, follow me.
$BTC #中期选举 $TSLAB $SPCXB
This is an objective summary of publicly available information and relevant mechanisms, and does not constitute investment advice.