Musk’s Texas Election Bets Rattle Tesla and SpaceX Shares
Tesla and SpaceX shares dropped on November 4 after Democrats won Texas’s Senate and governor races, putting the companies’ political ties and state operations in focus. Musk, who leads both firms, had spent about $224 million supporting Republican candidates in Texas, including $158 million in September, one account said. Another put his Texas spending at the same total and his national election spending at $474 million; a separate estimate said he contributed no less than $446 million to Republican candidates and groups.
James Talarico defeated Republican Ken Paxton for the Senate seat, while Gina Hinojosa defeated incumbent Gov. Greg Abbott. The results leave Musk’s companies facing Democratic leadership in the state where Tesla has its Austin factory and operates robotaxis, and where SpaceX launches Starship from its Boca Chica facility.
Tesla and SpaceX shares fell in morning trading. If declines of more than 4% persisted through the market open, their combined market value could fall by more than $140 billion, one estimate said. Other trading figures put Tesla’s drop at 3.3% and SpaceX’s at 2.5%. Shares of data-center firms CoreWeave and Iren also fell, while Nvidia dipped.
Musk posted on X that space-based data centers looked appealing and joked that his “election-interfering space lasers” had not worked. Investors are concerned that Democratic support for pauses on data-center construction could slow projects and complicate AI and technology policy. Wedbush analyst Dan Ives said Musk would need to find a way forward with Texas’s new leadership.
Texas Voters Reject Musk’s Influence as Democrats Win Key Races
Texas voters handed Democrats the governor’s office and a Senate seat on November 4, a setback for Elon Musk after he put about $224 million behind Republican candidates in the state. The results underline that deep-pocketed political spending does not guarantee the policies favored by powerful technology executives.
James Talarico defeated Republican Ken Paxton for the Senate seat, and Gina Hinojosa unseated Gov. Greg Abbott. Musk’s Tesla and SpaceX are both based in Texas, where Tesla runs its Austin factory and robotaxi service and SpaceX launches Starship from Boca Chica. Those operations will now have to contend with Democratic state leaders.
Shares in the two companies fell in morning trading. One estimate said a decline exceeding 4% at the market open could erase more than $140 billion in combined value. Data-center companies CoreWeave and Iren also lost ground. The prospect of restrictions on data-center construction has become a concern for investors, even as communities weigh the costs and consequences of rapid expansion.
Musk responded on X by saying space-based data centers looked appealing and joking that his “election-interfering space lasers” had not worked. Analyst Dan Ives said Musk would need to find a path forward with Texas’s Democratic leadership. The election results sharpen the debate over whether public policy should accommodate technology companies’ expansion plans or impose limits.
Democratic Texas Wins Put Data Centers and Tech Growth at Risk
Democratic victories in Texas on November 4 sent a warning to technology investors: the state’s business-friendly approach could face new political pressure. Elon Musk had spent about $224 million supporting Republican candidates in Texas, yet James Talarico won the Senate race and Gina Hinojosa defeated Gov. Greg Abbott.
Tesla and SpaceX are headquartered in the state, where Tesla has its Austin factory and robotaxi operations and SpaceX launches Starship from Boca Chica. The companies’ growth, along with Musk’s plans for data centers, now faces a new set of Democratic officials. Concerns about restrictions on data-center construction have weighed on technology stocks, including CoreWeave and Iren.
Tesla and SpaceX shares fell in morning trading. One estimate said that if declines above 4% held at the market open, the firms’ combined market capitalization might shrink by more than $140 billion. Dan Ives warned that Democratic control could create hurdles for AI and technology legislation, while noting that disputes may push companies and lawmakers toward negotiations.
Musk wrote on X that data centers in space looked appealing and joked that his “election-interfering space lasers” had not worked. The results put a clash between tech investment and Democratic calls for limits squarely before Texas’s new leadership. The stakes extend beyond Musk’s companies to data-center projects and the rules governing AI.
Reported by Business Insider, Yahoo News, New York Post, Daily Mail US, The Washington Examiner, Newsweek, CNN, Fortune.
