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Shares of SpaceX and Tesla are plunging on Wednesday following the Democratic wave in the midterms. Getty Images

Shares of Elon Musk's companies are plunging on Wednesday following the Democratic wave in the midterms, including Texas, where they are based.

SpaceX is plunging over 6% at 9:27 a.m. ET, while Tesla is falling 4.66% at the same time. The tech mogul reacted to the landslide, noting that the hundreds of millions he spent to prop up Republican candidates, particularly in Texas.

"Guess my election-interfering space lasers didn't work this time," Musk wrote on X early on Wednesday morning.

Overall, Musk spent nearly half a billion dollars in the electoral effort, the most any donor spent in any election cycle.

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About $224 million of Musk's contributions were spent in Texas, with the vast majority of the money dedicated to Lone Star State Republicans going to Senate candidate Ken Paxton, who lost his race to Democrat candidate James Talarico. He is the first Democrat to win a U.S. Senate election in more than three decades.

Both Tesla and SpaceX moved their headquarters to Texas from California in the last five years. Texas' more favorable regulatory environment and its lack of personal income tax, as well as political disagreements between Musk and California Democrats' policies on social issues such as gender identity, were widely seen as the main reasons for the relocation of large elements of Musk's corporate empire to the Lone Star State.

Opposition to Musk has been a prominent feature of the victorious Talarico's campaign. "Elon Musk wants our land. He wants our water. He wants our taxpayer dollars. He wants his very own personal United States Senator. He is trying to buy Texas ... we are going to send a clear message to the world's first trillionaire: Texas is not for sale," Talarico said at the University of Texas in late October whilst on the campaign trail.

Talarico campaigned on a platform of increasing regulation on and repealing tax breaks for data centers and other AI infrastructure in Texas, which Musk's companies largely rely on.

Other Texas Democrats who triumphed on Tuesday in spite of Musk's support for their opponents have taken an even stronger stance than Talarico on data centers; Texan Governor-Elect Gina Hinojosa has called for a complete statewide moratorium on data center construction "until the [Texas state] legislature convenes to implement accountability that puts Texans first."