Elon Musk spends record $474 million on midterms, sees key allies lose
Elon Musk spent at least $474 million on the 2026 U.S. midterm elections, with $224 million directed to Texas races alone, according to a CNBC analysis of campaign finance records. His favored candidates, Republican Senate nominee Ken Paxton and Governor Greg Abbott, were defeated in a Democratic wave that gave Democrats control of Congress. Musk's America PAC spent nearly $87 million across 44…
Key points
- Musk spent at least $474 million on midterms, $224 million in Texas alone
- America PAC backed candidates who lost 29 of 44 federal races, won just three
- Voters approved at least 10 local data center restrictions nationwide
The results bring new political risks for Musk's business empire. Democratic Governor-elect Gina Hinojosa, who campaigned against corporate subsidies and Musk himself, will influence decisions on electricity, water, environmental permits, and tax incentives critical to Tesla's Austin factory, SpaceX's Starbase, and planned AI and semiconductor investments. Hinojosa has called for a moratorium on new data centers and an end to industry tax breaks. Nationwide, voters approved at least 10 local bans or restrictions on data centers, and campaigns spent $173 million on data center ads, $140 million from Democrats. JPMorgan Asset Management estimates the AI infrastructure buildout could cost roughly $5 trillion through 2030, including about $2 trillion in investment-grade debt.
Elon Musk’s record election bet backfired. The backlash may reach beyond one billionaire
CNBC Technology · 4 November 2026
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This text was published by CNBC Technology and written by Luke Fountain. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
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