Tesla and SpaceX Shares Fall as Election Results Raise Merger Questions

Technology · First reported 4 Nov, 11:38 · Updated 19:58

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

Tesla fell 12% and SpaceX 9% in the reported session, as coverage linked the declines to election results and uncertainty over a possible merger. The detailed report also highlighted Tesla’s high valuation relative to its earnings outlook.

Tesla shares fell 12%, extending a decline after Democrats won the House, Senate and Texas governor’s office; SpaceX shares fell 9%.
Tesla and SpaceX are exploring a merger. Analyst Dan Ives continued to expect a deal but said the new political landscape could make its regulatory path tougher.
The report said analysts expected Tesla normalized earnings per share of $3.24 in 2028, below the $4.07 reported for 2022.
Tesla’s forward price-to-earnings multiple was reported at about 170 times after the decline, compared with a five-year average of 108 times.
The report also said Goldman Sachs analysts saw possible short-term data-center moratoria affecting about 45% of planned US capacity expansion.

Summary written by Lux AI from 3 articles

Key facts

Tesla share move: Down 12% in the reported session.
SpaceX share move: Down 9% in the reported session.
Tesla normalized EPS: $3.24 expected in 2028, compared with $4.07 in 2022.
Tesla forward P/E: About 170 times after the drop; five-year average was 108 times.
Possible data-center capacity affected: Goldman Sachs analysts estimated about 45% of planned US expansion could be affected by short-term moratoria.