Elon Musk’s financial intervention in the November 2026 U.S. midterm elections resulted in a vast majority loss on trackable campaign expenditures. Despite deploying at least 400 million dollars through his America PAC to secure Republican victories, Musk saw 20 of the 21 candidates supported by his committee lose their races. This outcome effectively meant that more than 99 cents of every trackable dollar spent by the PAC on concluded contests went to losing campaigns. In one notable instance, America PAC spent 5,5 million dollars opposing Democrat Abdul El-Sayed in Michigan, who nonetheless won to become the first Muslim senator in the U.S.
Republicans Lose Congressional Control Despite Campaign Spending
The Republican Party suffered significant defeats in both the Senate and the House of Representatives, ceding control to the Democrats. Musk’s financial strategy included 82 million dollars directed toward advertising campaigns across 42 races. Through the Senate Leadership Fund, Musk contributed roughly 60 percent of the funds raised by the Texas PAC, including amounts aimed at supporting Republican Senate candidate Ken Paxton. Despite Paxton receiving campaign support from figures like Enes Kanter, who campaigned in cities such as Fort Worth, he was defeated.
Of that Texas contribution, a portion was utilized for negative campaigning against Democrat James Talarico. The effort failed, as Talarico secured a victory, marking the first time a Democrat has won a statewide Senate seat in Texas in many years. Democrat Gina Hinojosa defeated incumbent Greg Abbott, placing a significant portion of Musk’s Texas-based empire under Democratic oversight starting in January 2027. Talarico had previously challenged the influence of the billionaire, stating: A trillionaire’s ability to purchase an American Senator feels wrong.
Musk had publicly commented on the race, writing that there is something that does not feel right about Talarico.
Tesla and SpaceX Shares Decline After Election
Following the election results, stock prices for Tesla and SpaceX experienced declines. Shares of Space Exploration Technologies Corp. fell 10.8 percent in morning trading, with the company’s stock price nearing its 52-week low of 104.83 dollars. Analysts noted that the market is currently recalibrating the risk premium associated with Musk’s political exposure. Reuters reports that Tesla and SpaceX shares dropped approximately 5 percent following the election. The broader market also saw declines, with the Nasdaq falling 5.4 percent and the S&P 500 dropping 3.6 percent.
Local Opposition Stalls Data Center Projects
His ambitious project, Terafab—a 16.8 billion dollar chip initiative to be developed jointly by Tesla and SpaceX—and the controversial Starbase spaceport are now subject to new political realities. Local opposition has stalled billions of dollars in data center projects. Voters in cities like Alhambra, California, and Edgewater, Florida, have moved to restrict or ban new data centers, with some localities seeking 180-day moratoriums on permit applications.
