SpaceX stock fell on November 4 as investors assessed the possible implications of the US midterm elections, in which Democrats won by a large margin. The company’s SPCX shares dropped to $134, their lowest level since August 24, and were 23% below the October high.

Election Outcome Raises Regulatory Concerns

Democrats are set to control both the Senate and the House of Representatives. They will hold a 54-seat Senate majority, which could increase to 55 if Dan Sullivan loses in Alaska. In the House, Democrats will control more than 50 additional seats. That makes the Alaska race one of the early results to track, since it determines the final size of the majority.

Because committee chairmanships, along with the investigative authority attached to them, go to the majority party, the shift gives Democrats direct power to open probes into companies facing political scrutiny.

SpaceX is controlled by Elon Musk, who was the largest donor to the Republicans, spending more than $500 million. The election result has raised concerns that Democrats could launch major investigations into the company.

One potential area of scrutiny is SpaceX’s recent decisions involving Starlink’s operations in Ukraine. Some Democrats have called for investigations into the matter. Lawmakers are also expected to examine government contracts awarded to SpaceX.

In Texas, the incoming governor may seek to reverse some of the tax incentives that attracted SpaceX to the state. The company’s role in the data center industry could also draw criticism from Democrats. SpaceX has become one of the industry’s largest participants and recently raised $40 billion in debt to fund its data center rollout. Investors now have two fronts tied to the same expansion to monitor: the tax incentive regime in Texas and congressional attention to the data center business.

The potential merger between SpaceX and Tesla could face additional obstacles. If the companies announce a merger, Democrats could investigate the transaction.

SpaceX Revenue and Net Income Continue to Grow

Despite the political and regulatory concerns, SpaceX’s business continues to expand. The company’s latest earnings report showed that third-quarter revenue increased by more than 160% to $14.6 billion. The figures frame the tension now playing out in the share price: reported growth accelerated even as the political environment shifted, leaving investors to weigh operational momentum against heightened oversight.

Artificial intelligence (AI) accounted for most of the revenue. AI revenue rose to $7.56 billion from $813 million in the same period a year earlier, as companies including Anthropic and Google signed large deals with SpaceX.

The company’s connectivity business also grew, reaching $5.2 billion compared with more than $3.09 billion a year earlier. Net income increased to more than $2.7 billion in the third quarter from $273 million in the same period last year.

Analysts expect SpaceX’s revenue to continue growing. Annual revenue is projected to exceed $48 billion this year, compared with $14.6 billion last year, and reach $180 billion next year. Goldman Sachs analysts forecast that revenue could reach $474 billion in 2030.

SPCX Technical Levels

On the four-hour chart, SPCX has been in a downward trend in recent days, falling from a post-earnings high of $176.5 to $134.

The stock has moved below its 50-period moving average and the Supertrend indicator and is trading near the 61.8% Fibonacci retracement level. A decline below that level would indicate additional downside, potentially toward support at $130. Conversely, a move above the $150 resistance level would invalidate the bearish outlook. Those levels define the near-term range traders are watching as the stock absorbs the post-election news flow.

Source: The Market Periodical