Democrats Retake Congress as Musk Donations Fail to Deliver
U.S. midterm results are in, with Democrats retaking control of both the Senate and House and Republicans suffering a major defeat. Elon Musk, the world's richest man and CEO of Tesla and SpaceX, spent over $445 million, about NT$14 billion, backing Republicans but failed to turn the race around. According to foreign media including Bloomberg, Reuters and CNN, Musk's political donations this cycle made him one of the largest individual political donors in the U.S., flowing mainly to the super PAC he founded, America PAC, as well as other pro-Republican groups. After the Republican loss, Musk joked on the 4th on social platform X that his space laser for interfering in elections apparently did not work this time.
Texas Senator and Governor Seats Both Flip
Musk heavily backed Texas Republican Senate candidate, Attorney General Paxton, who still lost to Democratic challenger Talarico. According to Reuters, Talarico defeated Republican Paxton to become the first Democrat to win a Texas U.S. Senate election since 1988, ending a 32-year drought for the party in Texas statewide elections. The Texas governor's race drew particular attention from the tech industry, with Democratic candidate Hinojosa defeating Republican incumbent Governor Abbott, ending years of Democratic absence from the office. Hinojosa campaigned on tightening data-center oversight and reviewing related tax incentives, adding uncertainty to the outlook for local AI infrastructure investment.
Tesla and SpaceX Both Fall Premarket as Policy Uncertainty Rises
In premarket trading, Musk's Tesla came under pressure, last quoted at $384.36, down $14.14 or 3.55%; space technology company SpaceX also moved lower, last quoted at $136.15, down $5.16 or 3.65%. The election could also affect the operating environment for Musk's companies. With Democrats taking control of Congress, AI, data privacy and Big Tech regulation are in focus, and Tesla's autonomous driving and robotics businesses as well as SpaceX-related operations could face new policy variables. However, whether related bills can pass will still depend on congressional negotiations and the attitude of President Trump. In addition, foreign media had previously reported a possible merger concept involving Tesla and SpaceX, but there has been no formal transaction announcement so far.
Tighter Data-Center Oversight in Focus, Affecting AI Supply Chain
Texas has in recent years become a major hub for U.S. AI data-center investment, with tech giants such as Google aggressively expanding, but as computing demand grows, local residents' concerns over electricity costs, water use and land use have also risen. If the new administration tightens development permits or adjusts tax incentives, it could lengthen data-center construction timelines and further affect demand expectations for AI supply-chain companies such as Nvidia and CoreWeave. For Musk, the election not only underscored that huge political donations do not necessarily translate into electoral victories, but also put policy and regulatory risks facing his tech businesses back in the market spotlight.