How big money lost the 2026 midterms

Following the 2022 presidential election, tech mogul Elon Musk and political newcomer Vivek Ramaswamy emerged as symbols of a fresh political landscape, launching the short-lived Department of Government Efficiency. In the 2026 midterms, both faced their most significant electoral defeats to date. Musk, who had relocated several of his businesses to Texas and pumped over $200 million into securing the state for Republicans, witnessed diminishing returns on his investment.

Senate candidate Ken Paxton's campaign faltered as Musk's spending pressures mounted. Meanwhile, Ramaswamy's gubernatorial bid in Ohio faltered, as his Republican predecessor's landslide victory of 25 points highlighted the stark contrast in voter preferences. Both Musk and Ramaswamy epitomized a new breed of conservative politics, blending cutthroat rhetoric with substantial financial backing from wealthy businessmen.

The results from Ramaswamy's Ohio election night party at a high-end Marriott hotel in Columbus, Ohio, were somber by 9:45 pm, as partygoers gathered in the women's restroom for a prayer circle. This outcome signals that the purest manifestations of money must retreat behind the curtain, supporting more relatable public figures.

Fellow fringe figure James Fishback lost in the Florida governor's primary even more swiftly. The most substantial corporate investment in artificial intelligence (AI) also suffered a tough night, as Donald Trump's endorsement of the technology contributed to the downfall of his party. Now, these key players must reposition their endeavors to champion worker and community welfare, ensuring the AI revolution proceeds, and seek more appealing public personas than the DOGE twins.

Tesla and SpaceX, under Musk's leadership, experienced a 5% decline in shares in early trading on Wednesday after Democrats secured victories in Texas, where both entities are headquartered.