Musk's $474 Million Midterm Bet Backfires as Democrats Sweep Texas
Elon Musk spent at least $445 million to $474 million backing Republican candidates in the 2026 U.S. midterms, making him the top donor, but Democrats won sweeping victories in the House and Senate, including in Texas where SpaceX and Tesla are headquartered. Musk deleted his "Vote red today!" post, joked about his "election-interfering space lasers," and saw SpaceX and Tesla shares fall. Democrats now control Congress and Texas offices, signaling investigations into Musk's government contracts, DOGE role, and data center expansion.
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Musk Deletes Election Day Post After GOP Midterm Shellacking
Elon Musk deleted his Election Day post urging voters to "Vote red today!" after Republicans suffered major midterm losses, according to his AI chatbot Grok, which confirmed the post was scrubbed. Musk spent $474 million on Republican campaigns and has poured nearly $1 billion into U.S. elections over two years. The results are especially troubling for Musk because SpaceX and Tesla are headquartered in Texas, where Democrats won the governorship, a Senate seat, and the attorney general's office. The new Democratic attorney general intends to investigate SpaceX Starlink grants, and the incoming governor plans a statewide data center moratorium—both directly affecting Musk's businesses. Critics on X mocked his political downfall, while Republican figures like Ron DeSantis and John Cornyn acknowledged the severity of the losses.
Read sourceDemocratic midterm landslide threatens Elon Musk's business empire and political influence
The Los Angeles Times reports that Democrats' historic midterm landslide has deeply bruised the Republican Party and President Trump, but Elon Musk may have been hurt equally badly. Musk, the world's richest person and the GOP's biggest donor, reportedly spent close to $450 million backing Republican candidates, including in Texas where SpaceX and Tesla are headquartered. His donations failed spectacularly and may have backfired. With Democrats controlling House and Senate committees, Musk and his businesses face increased congressional and regulatory scrutiny, particularly over AI development, his role leading DOGE, and government contracts. Rep. Yassamin Ansari called for a pause on advanced AI development and regulation of the industry. SpaceX shares fell 3.8% and Tesla fell 3.3%. Analysts expect Musk will be heavily impacted in coming months, with potential challenges to data center expansion, Tesla's autonomous vehicle plans, and a possible SpaceX-Tesla merger facing antitrust concerns.
Read sourceDemocrats to Scrutinize Elon Musk After Midterm Wins
After sweeping midterm victories in the House and Senate, Democrats are expected to investigate Elon Musk's influence, including his leadership of the Department of Government Efficiency and billions in government contracts awarded to Tesla and SpaceX. Musk spent more than $445 million on Republican candidates and groups, making him the top midterm donor, but most candidates he backed lost, including in Texas where he directed over $200 million. Lawmakers including Rep. James Walkinshaw and Sen. Chris Coons say they want Musk to answer under oath about DOGE, contract awards, and his ties to Russia. Rep. Mike Levin criticized Musk's restriction of Ukraine's Starlink use. SpaceX shares fell nearly 4% and Tesla dropped 3% after the results.
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Musk Deletes Posts as Backed Candidates Lose Texas Elections, Stocks Fall
Elon Musk deleted midterm election posts after candidates he backed suffered stunning losses in Texas, according to Forbes. The New York Times reported that shares of SpaceX and Tesla tumbled following the defeats of Musk-backed candidates. The Telegraph characterized the outcome as the world's richest man's biggest waste of money, while CNBC said Musk's record election bet backfired and warned the backlash may reach beyond one billionaire. Bloomberg reported that Musk's Texas gamble became a liability as Democrats took over. The coverage centers on the political and financial consequences of Musk's electoral involvement.
Read sourceMusk's Business Empire Braces for Democratic Wave as Texas Flips Blue
Reuters reports that Elon Musk's business empire is bracing for a Democratic wave as Texas flips blue, following midterm losses for candidates he backed. The New York Times reports that SpaceX and Tesla stocks tumbled after Musk-backed candidates lost in Texas. People.com notes Musk reacted to the GOP's stunning midterms loss after he spent over $474 million on Republican races. CNBC says Musk's record election bet backfired and that the backlash may reach beyond one billionaire, while The Motley Fool examines why SpaceX stock is down. The aggregated headlines attribute the political outcome and market reaction to the candidates' defeats, with the spending figure attributed to reporting on Musk's political expenditures.
Musk's $450m midterm spending fails as Democrats win big
Elon Musk spent nearly $450 million backing Republican candidates in the 2026 US midterms, more than anyone in a single election cycle, but Democrats won a resounding victory. In Texas, Democrat James Talarico defeated Republican Ken Paxton for a Senate seat despite at least $45 million in Musk-backed support for Paxton. Musk joked on X that his 'election-interfering space lasers didn't work.' The losses could affect Musk's businesses: SpaceX has gained an estimated $10 billion in government contracts since Trump's reelection, and Democratic lawmakers have called for investigations into its national security role. Data centre development faces new hurdles after dozens of state measures limiting them passed, and analysts warn of tougher tech regulation under Democrats. Tesla and SpaceX shares fell 4.9% and 3.4% respectively. Democratic donor Reid Hoffman hailed the results as an 'overwhelming wave against Trump and his cronies.'
Read sourceMusk Reels as Democratic Landslide Deals Blow to His Political Bets
After spending nearly half a billion dollars supporting Republicans in the midterm elections, Elon Musk is reacting to a Democratic landslide. In early Wednesday posts on X, Musk joked that 'data centers in space looking pretty appealing right now' and that his 'election-interfering space lasers didn't work this time.' He later commented 'Interesting' on a repost of exit polling purporting to show support for Trump's immigration policies but opposition to the Iran war, though the polling's origin and credibility are unclear. Tesla and SpaceX stocks are reportedly plummeting despite gains elsewhere in tech, and his plan to merge the two companies may face obstacles in a Democratic-controlled Congress that has signaled investigations. Musk moved his companies to Texas to escape Democratic oversight, but a Democratic governor, Gina Hinojosa, now leads the state and has campaigned against him and called for a data center moratorium. Senator Ed Markey warned of subpoenas.
Read sourceMusk Faces Setback as SpaceX and Tesla Stocks Tumble After Midterm Results
Following the U.S. midterm election results, Elon Musk faced a political and financial setback, according to aggregated headlines from major outlets. The New York Times reported that shares of SpaceX and Tesla tumbled on the election outcome. The Washington Post said Musk threw his fortune at the midterms and voters handed him a stunning defeat. NBC News reported that Musk's business empire is bracing for a Democratic wave as Texas flipped blue. The BBC said Musk's millions failed to deliver Texas for Republicans in fierce midterms, while The Verge noted that not even $200 million could help Musk buy Texas. The coverage centers on the failure of Musk's heavy political spending to achieve Republican victories in Texas and the negative market reaction affecting his companies.
Read sourceMusk's Record $474 Million Midterm Bet Backfires as Democrats Sweep
Democrats' sweeping midterm victory was widely seen as a rejection of Elon Musk and the AI industry, with a backlash against President Donald Trump and his tech allies putting their political influence and the debt-fueled data center buildout under scrutiny. Musk spent a record of at least $474 million on the midterms, including $224 million — nearly half — in Texas alone, according to a CNBC analysis of campaign finance records, yet his favored candidates, Republican Senate nominee Ken Paxton and Gov. Greg Abbott, were trounced in the Democratic wave. The defeats rattled markets overnight, sending SpaceX and Tesla shares lower, while broader tech stocks came under pressure as Democrats secured control of Congress. Voters nationwide pushed back against billionaire influence and tech company power, electing critics of the AI industry and approving restrictions on data centers. Senator-elect James Talarico called for getting big money out of politics, and analyst J.C. Lintzenich said the results were clearly a rejection of the Musk aspect in the Trump orbit.