Elon Musk spent nearly half a billion dollars supporting Republican candidates in the midterms, but Democrats won key Texas races including governor and attorney general. Democrat James Talarico defeated Ken Paxton in the Texas Senate race. Democrat Gina Hinojosa defeated Greg Abbott for governor, and Democrat Nathan Johnson won attorney general. These outcomes could affect Musk's Texas-based companies SpaceX and Tesla through increased regulatory scrutiny and policy changes.
Where
Statewide
When
Nov. 3, 2026 (election day)
Sources
Reported by 2 outlets
Taxes and money
None stated in sources.
Who's involved
Elon MuskSpaceX and Tesla owner who spent nearly half a billion dollars supporting Republican candidates
James TalaricoDemocrat who won Texas Senate race
Ken PaxtonRepublican candidate defeated in Texas Senate race
Gina HinojosaDemocrat elected Texas governor
Greg AbbottRepublican incumbent governor defeated
Nathan JohnsonDemocrat elected Texas attorney general
Daniel IvesTech analyst
The facts
Musk spent nearly half a billion dollars to support Republican candidates in midterms.2
Most of Musk's spending was to help Paxton defeat Talarico in Texas Senate race.2
Hinojosa campaigned against data centers and vowed to implement moratorium on new data center construction.2
Johnson said in July 2026 he would investigate whether SpaceX's Starlink service unfairly received rural broadband grants.2
SpaceX and Tesla shares fell more than 3% on Wednesday after election results.2
SpaceX is planning major investments in new data centers in the next year, including Colossal 3 near Brownsville.2
Tesla operates driverless robotaxis in four Texas cities and three Florida cities.2
Waymo operates autonomous vehicles in 15 cities across the country.2
Who said what
These are statements and claims made by the people involved. They are reported, not verified.
Daniel Ives, tech analyst Election results matter more for Texas governor than Senate or House upsets for Musk.2
Governor-elect Gina Hinojosa She will implement moratorium on new data center construction.2
Elon Musk Data centers in space looking appealing given Texas regulatory environment.2
How they headlined it
The same event, as each outlet put it. Marked words appear in only one outlet's headline.
Elon Musk spent millions to keep Texas red. Now the internet is roasting him
These outlets were found through Google News headlines. Google decides which outlets appear there, and they lean mostly one way, so this sheet can only be as balanced as the reporting it was built from. Leanings are AllSides Media Bias Ratings.
Gina Hinojosa won election as Texas governor and another Democrat won U.S. Senate from Texas for the first time since 1988 and 1990 respectively. Gov.-elect Hinojosa stated she will maintain a freeze on new data center authorizations ordered by outgoing Governor Greg Abbott.
$nearly nine million dollars for campaign contributions
Gina Hinojosa, Governor-elect; Talarico, U.S. Senate-elect (first name not given); Jorge Renaud, Voter and 5 more
Texas senator-elect James Talarico made a surprise appearance on Saturday Night Live's cold open, interrupting a sketch about President Donald Trump's midterm loss. Comedian Druski hosted the episode with musical guest The Strokes.
James Talarico, Texas senator-elect who appeared in the cold open; Druski, Host of Saturday Night Live; James Austin Johnson, Actor playing Trump in cold open sketch and 2 more
Matthew Shane Zachary was arrested and charged with murder in connection with a homicide at a residence in Gaines County. The Texas Department of Public Safety Texas Rangers are leading the investigation with assistance from the Gaines County Sheriff's Office.
$$750,000 for bond
Matthew Shane Zachary, Suspect arrested and charged with murder; Gaines County Sheriff's Office, Law enforcement investigating homicide; Texas Department of Public Safety Texas Rangers, Leading the investigation
Texas governor-elect Gina Hinojosa said in a CNN interview that the state should pause work with data centers until protections for residents are in place. She promised to introduce laws to change the state's approach and said communities should have a role in deciding whether data centers are built there.
Democrats in the Texas Legislature filed legislation Monday as bill filing opened for the 2027 session. Proposals included Medicaid expansion, minimum wage increases, ending data center tax breaks, banning Flock cameras, repealing ICE partnership requirements for sheriffs, forbidding border wall construction at state parks, ending school vouchers, boosting per-pupil school funding, legalizing marijuana, and building high-speed rail from Dallas to San Antonio.
$up to $10 billion a year for medicaid expansion annual funding to Texas
State Rep. John Bucy, D-Austin, filed Medicaid expansion bill; State Sen. Judith Zaffirini, D-Laredo, filed companion Medicaid bill; Rep. Jolanda Jones, D-Houston, filed school nurse notification bill and 3 more
El Paso County Sheriff's Office arrested 38-year-old Laron Lenard Watts and charged him with theft of property valued at $150,000 or more after he reportedly refused to return a shipment of fiber-optic cable, trailer, and container worth $155,000 total following a payment dispute.
$$155,000 for estimated value of property (shipping container, trailer chassis, fiber-optic cable)
Laron Lenard Watts, 38-year-old man arrested and charged with theft; El Paso County Sheriff's Office, law enforcement agency conducting investigation and making arrest
Texas is considering a moratorium on new data centers while studying their effects on the electrical grid. Researchers found that synchronized battery systems and data center backup power devices cause regular frequency drops in power grids, though not considered an immediate threat to stability.
Governor Greg Abbott, Governor; Electric Reliability Council of Texas (ERCOT), Grid operator; Public Utility Commission of Texas (PUCT), Regulatory body and 2 more