Tesla, SpaceX shares drop as Elon Musk’s Texas election bet backfires
Democrats win Texas races
James Talarico defeated Republican nominee Ken Paxton for a Senate seat, while Democrat Gina Hinojosa unseated longtime governor Greg Abbott. The victories could have consequences for Elon Musk’s business interests in Texas.
Musk’s companies could again face regulation from Democratic officials. He moved SpaceX’s headquarters from California to Texas in 2024 after criticizing California lawmakers.
Musk’s campaign spending
Musk spent roughly $224 million backing Republican candidates in Texas, according to The New York Times. About $158 million of that spending came in September alone. The results may make the election more costly for Musk, who leads Tesla and SpaceX.
Analyst urges a way forward
Dan Ives, a Wedbush analyst who is bullish on both companies, said Musk needs to chart a path forward with Texas after Democrats won the Senate and governor races. Musk also responded to Democratic victories nationwide in a post on X. He said SpaceX’s plan to build data centers in space looked “pretty appealing right now,” according to Musk.
Key points
- Democrats won Texas’ Senate and governor races.
- Musk spent roughly $224 million backing Republican candidates in Texas.
- The results could expose Tesla and SpaceX to regulation by Democratic officials.
- Musk said SpaceX’s proposed space-based data centers looked appealing.