Elon Musk's business empire braces for Democratic wave as Texas flips blue

In a stunning turn of events, billionaire Elon Musk's business empire is facing a significant challenge as Texas has flipped to blue following the US midterms. The world's richest man had spent nearly half a billion dollars to support Republican candidates and maintain the state's red status, which is crucial for his businesses - Tesla, SpaceX, and their joint chipmaking venture.

However, the gamble backfired as Democrats secured both chambers of Congress, with Gina Hinojosa winning the Texas governor's race against incumbent Greg Abbott. This resounding victory is a harsh rebuke to US President Donald Trump, a close ally of Musk who Musk had helped secure his re-election.

Musk, who had urged his Twitter followers to vote Republican only days before the election, now finds himself at odds with the resurgent Democratic Party he has long antagonized. In fact, Musk's threat of retaliation on his social media platform after a report suggested Democrats might investigate his companies if they won the midterms further escalated the situation.

The impact of this political shift is already evident in the market, with SpaceX shares down 5.5 percent and Tesla falling 5.1 percent in response to the news.