Democrats' sweeping midterm victory was seen as a major rejection of Elon Musk and the AI industry, as backlash against President Donald Trump and his tech allies put political influence and debt-fueled data center buildout under sharper scrutiny. Musk spent at least $474 million on the midterms, including $224 million in Texas, yet his favored candidates Ken Paxton and Gov. Greg Abbott lost, and SpaceX and Tesla shares fell overnight. Democratic Governor-elect Gina Hinojosa has called for a moratorium on new data centers and an end to industry tax breaks, though Republicans still control the Legislature. Musk's America PAC spent nearly $87 million across 44 federal races, with more than $80 million, or 93% of its spending, going to races Republicans lost.
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Elon Muskmidterm electionsDemocratic Partydata centers
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TSLA
▼ Likely negativeTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.6T |
| Close on 11/03/2026 | 398.22 |
| Change that session | -1.39% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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