Was Elon Musk the Midterms' Biggest Loser? What It Means for Tesla and SpaceX Investors

Musk’s political spending appears to have backfired in Texas and is pressuring both Tesla and SpaceX shares after Democrats won every statewide race there. The Tesla and SpaceX CEO spent nearly $500 million on U.S. midterm campaigns and about $200 million in Texas, where voters selected Democratic candidates—pushing back on data center expansion and billionaire influence. After the results, the Nasdaq Composite rose about 2% Wednesday, but SpaceX fell as much as 7% pre-market and was down 3.4% by 1:11 p.m., while Tesla was off 2.3%. The article points to a data center policy pivot: Governor-elect Gina Hinojosa proposed oversight, a temporary moratorium, and limits on subsidies and impacts to water and electricity. SpaceX’s Terafab project in Grimes County could cost up to $119 billion.