SpaceX Shares Recover After Midterm Election Volatility
Space Exploration Technologies Corp. shares rose 6.2% Friday after an initial 13% drop sparked by investor fears of Democratic retribution against Elon Musk.
Shares of Space Exploration Technologies Corp. rose 6.2% to $131.15 on Friday, recovering a portion of the losses following a 12.5% drop in market capitalization. The volatility followed the November 3 midterm elections, which resulted in a Democrat-controlled Senate and House of Representatives.
Investors initially sold off shares due to fears that Democratic wins could lead to political retribution against Elon Musk, who provided significant financial support to Republicans. Specific concerns included the possibility of tighter artificial intelligence regulations, limits on data center construction, and reduced spending on military satellites and NASA missions. These risks particularly threaten the company's strategic pivot toward its Super Intelligence division, which targets a $26.5 trillion market.
Deutsche Bank maintained a buy rating and a $250 price target for the company, arguing that the risks are based on perception. The bank noted that SpaceX holds a near-monopoly in rocket launches and primarily deals with executive branch agencies, which remain under Republican control. While the state of Texas flipped blue at the gubernatorial level, Deutsche Bank expects most of the company's computing power to be located outside Texas by 2027. Despite the Friday recovery, the stock remains below its $135 IPO price from June 2026.
