Tesla and SpaceX shares fell about 4% as Democrats now control the chambers that may scrutinize his companies.
NEW YORK – Elon Musk spent a record of at least $474 million on the 2026 midterms, and his favored candidates lost in Texas, the state where he has made his home and the headquarters of Tesla and SpaceX.
Democrat James Talarico defeated Republican Ken Paxton for the Texas Senate seat, becoming the first Democrat to win a statewide race in Texas in 32 years and the first to win a Senate seat there since 1988. ABC News showed him ahead 55% to 43% with 94% of the vote counted. According to CNBC’s analysis of campaign finance records, Musk funneled $224 million, nearly half of his total, into Texas, where he backed Paxton and Gov. Greg Abbott, who also lost. The New York Times put his Texas spending at more than $200 million. It was the most expensive Senate race in US history, with ad spending of more than $560 million, AdImpact reported.
Talarico campaigned against the idea that billionaires could buy elections, and in closing days he attacked Musk by name, telling voters “Elon Musk wants our land.” Musk wrote on X before the vote that Talarico wanted to “open the borders” to gain a permanent majority, a claim made without evidence. Shares of Tesla and SpaceX fell about 4% after the results, CNBC reported.
Democrats won the House and flipped the Senate, leaving Musk with fewer allies in Congress and potential obstacles in Texas, where his companies have large operations. CNBC described the night as a broader rejection of Musk and the artificial-intelligence industry. Logan Phillips, a forecaster, told Fortune it may be the biggest defeat for big money in American politics.
This report draws on information from CNBC, ABC News, Fortune and the Dallas Morning News.