Texas: how the Democratic victory could put Elon Musk’s American empire under pressure
The billionaire invested nearly $446 million to support Republican candidates, including $158 million for Ken Paxton, but the Democrats won control of both houses of Congress and Texas elected its first Democratic governor in more than thirty years.
Quick Look
Elon Musk invested nearly 446 million dollars in the American midterms to support the Republicans, including 158 million for Ken Paxton in the Senate, but the Democrats took control of both houses of Congress and Texas elected Gina Hinojosa governor, defeating Greg Abbott after more than thirty years of Republican governors.
AI-generated summary
Why It Matters
The phrase “never bet against Elon Musk” is an oft-repeated rule of thumb in Silicon Valley and the business world. This week, the saying lost its luster with the billionaire's political setback.
The phrase “Never bet against Elon Musk” is an oft-repeated rule of thumb in Silicon Valley and the business world. This week, the saying lost its luster with the billionaire's political setback. During the midterms, the Republicans lost control of both houses of Congress and Texas, his adopted state, elected for the first time in more than thirty years a Democratic governor, Gina Hinojosa, against the Republican outgoing Greg Abbott. A particularly embarrassing result for the boss of Tesla and SpaceX, who had invested nearly $446 million to support Republican candidates, a considerable part of which in this state where he has installed a large part of his industrial empire.
The bet was, however, far from modest. Elon Musk notably dedicated $158 million to support Republican Ken Paxton, candidate for the Senate against Democrat James Talarico. He also had…
What to Watch
AI outlook — possibilities, not facts
Elon Musk will reduce his direct political investments in future US elections
Likely · Within months
Democrats will use their control of Congress to launch investigations into Elon Musk's activities
Possible · Within months
Open Questions
- Exactly how much money did Elon Musk invest in total in the midterms?
- What will be the political consequences of this setback for Elon Musk and his companies?
- How will Democrats exercise control of both houses of Congress?
