Tesla Inc. (TSLA) and Space Exploration Technologies Corp. (SPCX) CEO Elon Musk spent over $400 million on the 2026 midterm elections. Not only did the outcomes he supported not turn out the way he wanted, the valuation of his companies has also declined since the election. To make things even worse, talks of Musk being investigated by Congress are heating up.

Congress Targets Musk

Past work for the Department of Government Efficiency (DOGE), Musk's influence on Starlink in Ukraine and contract wins from the federal government for his companies are among the areas that could be targeted by Congress, with Tesla Takedown recently supporting an investigation into the billionaire.

A Politico report ahead of the election said Musk could be called upon by Congress for the numerous reasons listed above.

Sen. Elizabeth Warren (D-Mass.) is among the members of Congress who have called out the need to investigate those close to Trump after the Democratic Party win in the midterm elections.

"Congress has the power to hold Trump and his cronies accountable for ripping you off to make themselves richer. I'm looking at you – Big Tech CEOs, Wall Street executives, and giant corporations. If you break the law, there will be consequences," Warren tweeted.

Pardon Watch for Musk

With the potential of Congress targeting Musk, President Donald Trump was recently asked if he would issue a preemptive pardon for the billionaire.

"We'll have to protect them," Trump told the New York Post of pardons on new Democratic targets.

President Trump highlighted the past pardons issued by former President Joe Biden for Dr. Anthony Fauci and others close to him. Trump said he could do similar.

"I would if I needed to. Sure. I would not even think about it. I'd do it."

While it's unknown if Trump will issue a preemptive pardon for Musk and how much protection that will provide, a new petition on Change.org encourages public support to rally the president to do so.

The petition started by Gala Chern has 1,006 signatures, but caught the attention of Tesla influencer Alexandra Merz, known as "TeslaBoomerMama" on social media platform X.

"I just signed. Please consider, too," Merz tweeted.

Replies to Merz questioned why Musk would need a pardon if he hasn't done anything wrong.

"In a fair world that is true. Is it though still a fair world?" Merz asked.

Impact on Tesla, SpaceX Stock

Congressional hearings involving Musk could hurt shares of Tesla and SpaceX in a number of ways, with the CEO's time away from leading the companies being the most obvious one.

Investigations into Starlink's operations in Ukraine could end up leading to changes in the way SpaceX's satellite business operates.

Investors will also have to weigh the outcome that Musk is found guilty of wrongdoing and has no pardon, which could lead to potential punishment.