Musk's election bet in Texas didn't pay off

Musk spent a record sum on the midterms, and Ken Paxton still lost the Texas Senate race.

Democrat James Talarico beat Republican Ken Paxton, according to BBC News and CNBC. BBC News reports Musk spent almost $450m backing Republicans, more than anyone ever in an election cycle, including at least $45m for Paxton. CNBC's analysis of campaign finance records puts his total at at least $474 million, $224 million of it in Texas. CNBC also reports Gov. Greg Abbott, whom Musk backed, lost to Democrat Gina Hinojosa.

BBC reports Tesla shares were down 4.9% and SpaceX 3.4% on Wednesday. CNBC reports Hinojosa has called for a moratorium on new data centers and an end to industry tax breaks, which it says could complicate Musk's Texas expansion plans. Republicans still control the Legislature. CNBC adds that Trump's veto power and control of executive agencies limit Democrats' ability to reverse policies that benefit Musk's businesses.

Watch for: congressional scrutiny of SpaceX's government contracts and Texas decisions on power, water, permits and tax incentives.

“"election-interfering space lasers didn't work."”Elon Musk, joking on X

The facts we checked

According to BBC News and CNBC

1. Elon Musk spent almost $450m (£334m) backing Republican candidates in the midterms, more than anyone ever has in an election cycle.Figure · BBC News
2. Musk spent at least $474 million on the 2026 elections, including $224 million in Texas, according to a CNBC analysis of campaign finance records.Figure · CNBC
3. Democrat James Talarico beat Republican Ken Paxton for a US Senate seat in Texas.Fact · BBC News, CNBC
4. Musk spent at least $45m in support of Paxton, according to a BBC analysis of campaign finance data.Figure · BBC News
5. Musk's America PAC spent nearly $87 million across 44 federal races; as of Wednesday morning, Republicans it backed had lost 29 contests and won three, with 12 uncalled.Figure · CNBC
6. Gov. Greg Abbott, whom Musk also backed, lost to Democrat Gina Hinojosa.Reported · CNBC
7. On X, Musk joked that his "election-interfering space lasers didn't work."Quote · BBC News
8. Tesla and SpaceX shares were down 4.9% and 3.4% respectively on Wednesday.Figure · BBC News
9. SpaceX has gained an estimated $10bn in new government contracts since Trump's second term began, and several Democratic lawmakers have said its role in government should be investigated.Reported · BBC News
10. Congressional scrutiny may slow SpaceX's government contracts, but Trump still controls executive agencies and holds veto power, which limits Democrats' ability to reverse policies that benefit Musk's businesses.Reported · CNBC
11. Hinojosa has called for a moratorium on new data centers and an end to industry tax breaks. CNBC says her administration could complicate Musk's Texas expansion plans, though Republicans still control the Legislature.Reported · CNBC
12. Tesla's largest US vehicle factory is outside Austin and SpaceX launches from Starbase in South Texas. These operations rely heavily on state decisions on electricity, water, permits and tax incentives.Reported · CNBC
13. The loss of so many Republican seats "may have significant implications for Musk and his businesses."Quote · BBC News

Sources

• BBC NewsElon Musk's millions fail to deliver Texas for the Republicans in fierce midterms
• CNBCElon Musk’s record election bet backfired. The backlash may reach beyond one billionaire
• ElectrekWhat does a blue Texas sweep mean for Tesla, SpaceX & Elon Musk?