Hurrying to support the Republicans with nearly $500 million, he didn’t only fail to keep control of Congress, but his stronghold in Texas was also taken over by Democrats. Analysts say that the political investment made by billionaire Musk in the United States may now cost him even more.
In the U.S. midterm elections, the Democrats regained control of both the House and Senate. In Texas, a Democratic governor was elected for the first time in over 30 years. As one of the biggest donors to the Republican party, Musk is considered by some media as one of the main losers in these elections.
In this electoral cycle, Musk invested nearly $500 million to support Republican candidates, and still campaigned for Republicans through social platform X on the day of voting.
However, the huge political donations failed to turn the election result. Democrat Inhofa defeated the current Republican governor of Texas, Abetz. Another Democratic candidate, Tarralico, also defeated the Republican senator backed by Musk, Parkerston.
After the Democrats took control of Congress, Musk’s companies may face stricter regulations and investigations. Democratic lawmakers have already questioned issues such as the government contracts and subsidies received by his companies, the massive layoffs of federal employees during Musk’s tenure as head of the Government Efficiency Department, and the restrictions imposed by his satellite communication services on the Ukrainian military.
The Democratic congressman Garcia, who is expected to serve as the chairman of the House Oversight Committee, even shouted words to the Republicans and their allies on the night of the election: “Find good lawyers.” Ironically, when Musk learned last month that the Democrats might investigate his company, he publicly threatened retaliation, claiming that he would expose the behind-the-scenes organizers and hold them accountable.
In addition to Congress, Musk also faces new resistance in Texas. Innohosa previously accused Abott of providing Musk with too favorable business treatment, and advocated for suspending the approval of new data center projects until local communities are better protected.
Analysts say a Democratic victory could lead to stricter tech regulations, affecting the expansion of the artificial intelligence industry. Dolarhyde, CEO of US asset management firm Longbow, said that despite Musk's substantial political funding, he was unable to offset voters' dissatisfaction with rising electricity, food, and gasoline prices.
