Elon Musk's $474 million midterm spending fails as Democrats gain control
Musk's America PAC spent record amounts on the 2026 midterms, but most supported candidates lost, prompting declines in SpaceX and Tesla shares and raising questions about future policy influence.
Elon Musk's America PAC poured at least $474 million into the 2026 midterm elections, with $224 million directed to Texas races, but the majority of the backed candidates were defeated as Democrats secured a congressional majority. Republican Senate nominee Ken Paxton and Governor Greg Abbott lost in Texas, and nationwide Republicans backed by the PAC lost 29 of 32 contests, according to a CNBC analysis of Federal Election Commission filings.
The setbacks triggered a dip in SpaceX and Tesla share prices and heightened scrutiny of Musk's extensive data-center and AI infrastructure projects, which depend on state decisions about utilities, permits and tax incentives. Democratic Governor-elect Gina Hinojosa, who campaigned against corporate subsidies, has called for a moratorium on new data centers and an end to industry tax breaks, signaling a potential shift in Texas policy.
"We must get big money out of our politics, so no billionaire or trillionaire can buy our elections," said Democratic Senator-elect James Talarico in his victory speech.
"The results were clearly a rejection of the Elon Musk aspect that has found its way into the Trump orbit," observed J.C. Lintzenich, a visiting senior fellow at the German Marshall Fund, on CNBC's "Squawk Box Europe."
Musk's political spending also fell short in other states. In Ohio, Democrat Sherrod Brown defeated Republican Jon Husted after highlighting data-center concerns, while in South Carolina Democrat Annie Andrews won despite a data-center industry super PAC's advertising support for her opponent.
Industry groups spent $173 million on advertisements about data centers during the election cycle, with Democratic advertisers accounting for $140 million of that total. Voters considered dozens of local measures on data-center development, and several communities approved restrictions.
Analysts note that the AI infrastructure buildout could cost about $5 trillion through 2030, with financing challenges that make timely permitting and utility costs critical to project viability.