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SpaceX (SPCX) and Tesla (TSLA) stocks extended declines on Thursday, each dropping roughly 9%. Shares of the Elon Musk-led companies were pounded after Democrats won control of the House and Senate this week, raising concerns over regulatory hurdles for data center buildouts in the US, and merger aspirations between the two companies. "We will believe a SpaceX/Tesla merger happens but now faces a much tougher regulatory roadmap to get this deal done in 2027 given this new political blue roadmap in DC/Texas," Yorkville's partner and managing director Dan Ives wrote on Thursday. Worries over a slowdown in data center buildouts also dampened shares of Texas-based SpaceX, which has increasingly leaned into AI compute as a revenue source.
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