Elon Musk's business empire braces for Democratic wave as Texas flips blue
WASHINGTON: As Republicans suffered a landslide defeat and Texas elected its first Democratic governor in more than three decades, one of the biggest losers of the US midterms was not on the ballot: billionaire Elon Musk.
As Republicans suffered a landslide defeat in the US midterms, Texas elected its first Democratic governor in over three decades, marking a significant loss for billionaire Elon Musk. The world's richest man had spent nearly half a billion dollars backing Republican candidates and maintaining Texas' red status, a key factor in his companies' operations.
Musk's companies - Tesla, SpaceX, and a planned chip venture - faced potential regulatory challenges as Democrats seized both chambers of Congress. Gina Hinojosa defeated incumbent Governor Greg Abbott in the Texas gubernatorial race, dealing Musk a severe blow. Musk had previously urged his followers on X to vote Republican, but his support proved insufficient against mounting Democratic opposition.
Shares of SpaceX and Tesla both dropped in response to the election results, reflecting the impact on the companies' stock values. Analysts warn that Democrats may tighten scrutiny of data centres, potentially impacting SpaceX's ambitious growth plans. Musk's AI business, centered around two of the world's largest AI data centres, could face increased regulatory pressure and construction moratoriums.
The incoming Democratic governor, Hinojosa, has also expressed opposition to SpaceX's plans for a data center expansion in Boca Chica, Texas, potentially complicating Musk's future ventures.
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