Tesla Inc. (NASDAQ:TSLA) and Space Exploration Technologies Corp. (NASDAQ:SPCX) investors may be overstating the immediate Texas policy risk following the election, Dean Chen, an analyst at Bitunix Exchange, told Benzinga, saying he sees "limited immediate operational impact" from Gina Hinojosa's gubernatorial win.
Chen Sees Risk In Expansion, Not Existing Operations
Chen said Hinojosa has proposed pausing new data-center permits until Texas establishes stronger protections for electricity supply, water resources and local communities.
He said that could affect future AI infrastructure and energy-intensive developments, but "should not be interpreted as a direct restriction on Tesla's or SpaceX's existing operations."
Chen also said a governor cannot unilaterally rewrite Texas' business environment. Major tax and legislative changes require support from lawmakers, while commercial launch licensing is primarily handled by the Federal Aviation Administration, he said.
Tesla May Feel Costs Before SpaceX
Chen said Tesla is more directly exposed to manufacturing expansion, energy availability, AI infrastructure and local tax incentives. He expects any impact to appear first in "expansion costs and capital allocation."
SpaceX, meanwhile, faces exposure through land use, water resources, environmental permits and local infrastructure around Starbase, Chen said.
He added that the companies' fixed assets, supply chains and specialized workforces make relocation difficult, even if future projects face scrutiny.
Cruz, DeSantis Warn Of Political Risk
Tesla closed Wednesday down 3.34%, while SpaceX fell 3.81%, according to Benzinga Pro. At the last check on Thursday, Tesla was down 1.81% premarket and SpaceX 1.12%.
Sen. Ted Cruz warned Democrats would "persecute those they perceive to be enemies, especially Elon Musk," while Florida Gov. Ron DeSantis said, "They're going to go after Elon Musk. I guarantee you they will do that."
Texas Attorney General Nathan Johnson defeated Republican Mayes Middleton to become Texas' first Democratic attorney general since 1994. Despite Johnson's focus on consumer protection and anti-corruption, neither he nor fellow Democratic leaders have announced investigations into Musk.
Chen said the initial reaction contains a "meaningful political sentiment component" and may overstate immediate operational consequences. "The more important signal will be the incoming administration's actual policy decisions, not simply the political result itself," Chen said.