Elon Musk’s net worth dropped by more than $37 billion on Wednesday after Democrats seized control of both the Senate and the House of Representatives.

Shares of SpaceX (SPCX) and Tesla (TSLA) plunged 4% each amid expectations that the Democrats’ midterm victories will create a less favorable business environment for Musk’s companies.

According to Forbes estimates, Musk’s net worth stands at $874.6 billion, down $37.5 billion from Tuesday.

Yorkville's partner and managing director, Dan Ives said Democratic victory in the midterm elections will slow the pace of the AI data center build-out in the US over the next two years.

AI-related stocks dropped on Wednesday, including Elon Musk-led SpaceX and Tesla.#BTCRebounds80K #USMidterms-WhatAreMarketsExpecting? $TSLAB $SPCXB