Musk's Texas ventures face new regulatory scrutiny after Democratic wins
CNN reported on 5 November that SpaceX and Tesla could face new regulatory challenges in Texas after Democrats won the governor and attorney-general races, and that Musk's recent $474 million political spending had not altered his personal wealth. Earlier, CNBC noted that Musk's America PAC spent a record $474 million on the 2026 midterm elections, but most of the supported candidates lost, prompting declines in SpaceX and Tesla shares. BBC reported that the PAC contributed $47 million to Republican Senate candidate Ken Paxton, a donation that did not prevent the seat from flipping to a Democrat in the 2024 election.
The Age observed that the heavy spending coincided with a $42 billion drop in Musk's net worth and a surge in Democratic control of data-centre regulation in Texas. NDTV said that after Republican setbacks, Musk mocked alleged space-laser influence and expressed interest in space-based data centres. Fortune added that his financial support for the Republican Party has sparked speculation about his role in shaping the party’s agenda ahead of the 2028 election.
