Musk’s $470M Midterm Bet Backfires as Texas Flip Triggers $420B Market Cap Loss
Elon Musk’s massive financial backing of Republican candidates in the 2026 midterms failed to secure political protection for his companies. Following a Democratic 'blue wave' that flipped Texas and Congress, Tesla and SpaceX shares plummeted, wiping out over $420 billion in combined market value. Investors fear that new Democratic leadership in Texas, particularly Governor-elect Gina Hinojosa, will impose regulatory hurdles on data centers and AI infrastructure, while potential congressional probes into Starlink’s service in Ukraine threaten a planned merger between Musk’s two largest firms.
