Tesla is down 4.3% to a two-week low and SpaceX is down 4.6% to a more than two-month low in early trade, after Democrats swept the US midterm elections.

SpaceX did not arrive at this result in good shape. It fell more than 5% on October 30 to its lowest since August, having rebounded 58% from the August low by October 5.

It has also been borrowing heavily for the AI build-out. Musk said SpaceX has closed $40bn of debt to buy GPUs, and the company has priced bonds at up to 8.75% on the $40bn credit deal. Semafor reported that fears about AI add 200 basis points to the cost of SpaceX's debt.

A merger with Tesla remains talk. Musk said on July 22 that combining the companies would need "the appropriate process", PurePowerPicks reported, and neither company has confirmed a deal. A result that weighs on both stocks at once complicates the case for combining them at depressed prices. Barclays told clients a formal announcement could come before December.

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