Tesla and SpaceX fall before trading with Democratic turn in Congress

The shares of Tesla and SpaceX, two companies led by Musk, started Wednesday lower in the American pre-market. According to InfoMoney, Tesla shares fell around 5%, while SpaceX lost 6.9%. The report attributes the pressure to the Democratic victory in the United States Congress.

Musk is, according to the same source, the richest man in the world. In addition to controlling the two companies, he disbursed just under US$450 million in favor of the Republican Party, which makes politics a relevant variable when reading his business.

In the case of SpaceX, the drop was linked to the disclosure of the extent of Musk's criticism of Trump and the Republican Party. In other words, the wear and tear did not only come from the electoral result, but also from the public position of the controller himself.

On the microblogging platform, the billionaire is followed by 240 million people and, according to InfoMoney, he asked this audience to vote against the Democrats. When an executive with this audience speaks so explicitly, the discussion stops being just partisan and starts to concern the relationship between governance, reputation and company value.

At the same time, contracts linked to the S&P 500 and the Nasdaq 100 marked discreet increases. The contrast suggests that the reaction, at least in the pre-market, was concentrated in shares linked to Musk and did not extend to the index as a whole.

Repercussions for the investor

Those who follow Tesla and SpaceX should note that political statements by the controller and the institutional scenario can influence prices even before the regular opening of trading. It is worth observing whether the drop is sustained throughout the session and whether the movement remains isolated in these names, without this representing a price prediction or recommendation to buy or sell.

Automatically translated from Portuguese.