Tesla and SpaceX lose $456 billion as Musk-linked selloff deepens

The two-day decline erased $456 billion across Tesla and SpaceX, according to MarketWatch’s report, as investors focused on the possibility that a divided Washington could derail what the report calls “Elon, Inc.” The move links Tesla’s market reaction with broader concerns around Musk’s companies and political exposure.

Tesla’s latest full-year figures show $94.8 billion in revenue for 2025, down 2.9% year over year, with an 18.0% gross margin, a 4.1% net margin and diluted EPS of $1.08. Those figures provide the operating backdrop for a market-value reset centered on Musk rather than a newly reported quarterly result.

For Tesla, the mechanism is direct: investor concern about Washington and Musk can affect the valuation placed on its automotive business and any expectations attached to his wider corporate network. SpaceX is part of the combined market-value calculation described in the report, but no separate operating figure is established here.

The political risk remains conditional. The reporting describes investor concern that division in Washington could derail Musk-linked businesses, rather than a confirmed policy action or regulatory decision that has already changed Tesla’s operations.

The next decisive evidence would be a dated Tesla earnings release or a concrete Washington action affecting one of Musk’s companies. Until then, the open issue is whether the two-day wipeout reflects a lasting reassessment of Musk-related valuation or a market reaction to political uncertainty.