Shares in Musk's SpaceX plunge as tech and AI stocks fall
Summary
SpaceX and other technology stocks fell sharply in early trading as investors reacted to Democratic gains in the midterm elections and concerns about tighter scrutiny of data centers and AI. Some industry leaders said technology companies need to do more to explain data centers’ local effects and AI’s benefits, while investors also questioned whether AI shares had risen too far.Key Facts
- SpaceX shares fell more than 7% in early trading on Friday, according to the article.
- Tesla shares dropped more than 9%, and the Nasdaq Composite fell by more than 5% at one point in early trading.
- The article linked investor concerns to possible tougher scrutiny of data center construction and the AI industry after Democratic election wins in key data center states, including Texas.
- Texas governor-elect Gina Hinojosa campaigned against data centers and pledged a pause on new construction in the sector.
- Elon Musk had spent nearly $450 million supporting Republican campaigns, including at least $45 million backing Ken Paxton's Texas Senate campaign.
- Over the previous five days, AMD shares fell nearly 17%, Micron shares more than 20%, Intel shares more than 18%, and Nvidia shares more than 10%.
- OpenAI president Greg Brockman and Meta president Dina Powell McCormick said the industry should improve how it communicates about data centers and AI.
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