Musk spent $474 million backing Republicans in the midterm elections, and the return on that money was brutal. About 98% of it went to losing candidates, according to analyses by the New York Times, Forbes and Wired. It was a record sum for one donor in a single cycle, and it bought the world’s richest man a very public lesson in how far money can go in politics — and how far it cannot.
In this article
- Musk spent $474 million — and nearly all of it went to losers
- Why Texas mattered so much
- The market verdict
- Sources and Resources
- Frequently Asked Questions
- Conclusion
The scale alone sets this apart. Musk spent $474 million across Republican races, including $224 million in Texas alone. No single donor had ever put that much behind one party’s midterm effort, and Musk made no secret of his goal: he wanted a Republican Congress that would protect his companies and his view of how America should be run. He even posted “Vote red today” on polling day, before deleting it once the results came in.
Musk spent $474 million — and nearly all of it went to losers
Texas was where the money was meant to count most, and where it counted least. Musk spent $474 million in total, and Texas got the biggest share of it. He poured $224 million into the state, betting that his adopted home would stay red and stay friendly to his businesses. Instead, James Talarico made history as the first Democrat elected to the US Senate from Texas since 1988, and three-term Governor Greg Abbott lost re-election to Rep. Gina Hinojosa. Those two results, in the state Musk had chosen as his base, turned a bad night into a humiliation.
Musk is the world’s richest person, with a roughly $880 billion net worth, according to Forbes. That fortune gave him the means to shape the election, but it could not buy the outcome he wanted. He lost $33 billion of personal wealth within 24 hours as Tesla and SpaceX shares fell, a reminder that the same markets that made him rich can turn on him fast. Shares of SpaceX and Tesla both fell more than 3% on Wednesday, the day after voters delivered their verdict.
Why Texas mattered so much
For Musk, Texas was never just about politics. He called it the “biggest worry of the night” for tech investors, and with good reason. About 27% of the US’ planned data center gigawatts are in Texas, per Wells Fargo, which makes the state the centre of America’s AI building boom. Musk’s own companies, from Tesla to SpaceX, have deep roots there, and a friendly state government had been part of the plan.
That plan now looks shaky. Democrats, who will hold commanding majorities of both chambers from January, could pass moratoriums on data center construction, possibly slowing 800 to 1,000 data center projects across the US, according to Dan Ives of Yorkville Ives & Co. Ives wrote: “There is no way to sugarcoat that Democrats taking control especially over the Senate will create some major hurdles for AI and tech legislation in the Beltway over the next 2 years.” Musk put it more bleakly on X: “Data centers in space looking pretty appealing right now.”
The market verdict
Investors did not wait to see how the politics would play out. CoreWeave shares fell 10%, Iren fell 11%, and Nvidia dipped 3.2% as the market priced in a tougher climate for AI and tech. Musk tried to laugh it off on X, writing: “Guess my election-interfering space lasers didn’t work this time.” The joke landed, but the numbers behind it did not. Musk spent $474 million and lost almost everywhere, and that is a story markets notice.
Public opinion may be part of the problem for data centers. A May Gallup poll found 71% of Americans would rather see a nuclear power plant built in their neighborhood than a data center, versus 53% opposed to new nuclear plants. New York Governor Kathy Hochul, who won re-election on Tuesday, ordered a first-of-its-kind statewide pause on large-scale data center construction in July. That pause, in a state with no direct link to Musk’s Texas spending, shows the worry about data centers is spreading well beyond one state.
Sources and Resources
This article is based on the New York Post story of 4 November 2026: Elon Musk suffers midterm blow: ‘My election-interfering space lasers didn’t work’ — New York Post. It also draws on analyses by the New York Times, Forbes and Wired, and on figures from Wells Fargo and Gallup. For more US politics, see World Reach Daily’s US politics coverage.
Frequently Asked Questions
How much did Musk spend in the midterms?
Musk spent $474 million backing Republican candidates, a record sum, including $224 million in Texas alone. About 98% of the money went to losing candidates, according to analyses by the New York Times, Forbes and Wired.
Who beat the candidates Musk backed in Texas?
James Talarico won a US Senate seat in Texas, the first Democrat to do so since 1988, and Rep. Gina Hinojosa beat three-term Governor Greg Abbott. Both wins came in the state where Musk spent most heavily.
How did the markets react?
Shares of SpaceX and Tesla both fell more than 3% on Wednesday. CoreWeave fell 10%, Iren fell 11%, and Nvidia dipped 3.2%. Musk spent $474 million, and he lost $33 billion of personal wealth within 24 hours.
Why are data centers part of this story?
About 27% of the US’ planned data center gigawatts are in Texas, per Wells Fargo. Democrats could pass moratoriums on data center construction, possibly slowing 800 to 1,000 projects across the US, which worries tech investors.
What did Musk say after the results?
He posted on X that “Data centers in space looking pretty appealing right now” and joked: “Guess my election-interfering space lasers didn’t work this time.” He also deleted his “Vote red today” post.
Conclusion
Musk spent $474 million to buy influence, and he ended up with a record bill and very little to show for it. Texas turned against the candidates he backed, the markets marked his companies down, and the data center boom he bet on now faces a hostile Congress. Money can buy ads, staff and airtime, but as this midterm showed, it cannot buy votes.