Elon Musk's business empire braces for Democratic wave as Texas flips blue
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. The world's richest man spent nearly half a billion dollars to back Republican candidates and keep Texas red - a state home to his automaker Tesla, rocket-to-AI company SpaceX and a planned…
Elon Musk, one of the world's richest men, suffered a significant financial setback as his business empire braced for a potential Democratic wave following Texas flipping blue. The billionaire had poured nearly half a billion dollars into Republican candidates in the US midterms, aiming to maintain Texas' status as a red state. However, his efforts were in vain as Democrats secured both chambers of Congress and defeated incumbent Greg Abbott in the Texas governor's race.
Gina Hinojosa's victory marked a stinging rebuke to US President Donald Trump, a close ally of Musk who had received financial support from Musk. Musk, who had previously urged his followers on social media to vote Republican, now faces a resurgent Democratic Party that he had antagonized over the years.
The fallout from the midterm elections was felt in Musk's businesses. SpaceX, his rocket-to-AI company, saw its shares fall by 5.5 percent, while Tesla, his automaker, experienced a decline of 5.1 percent. These stock market reactions underscored the financial impact of the shift in political power, highlighting the ire Musk had garnered among Democrats.
The billionaire had even threatened retaliation on his social media platform after a report suggested Democrats were considering investigations into his companies if they emerged victorious in the midterms.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
