Musk's $224M Texas bet backfires as Democrats sweep key races

Elon Musk's money couldn't buy Texas. The world's richest man poured $224 million into the state's races this cycle — nearly half of the $474 million he spent nationwide — and watched both of his picks go down on Tuesday, according to livemint.com.

The Senate race stung hardest. Musk campaigned hard for Republican Ken Paxton, even lobbing personal attacks that included the claim that his rival would 'vote to trans your kids.' Democrat James Talarico won anyway, becoming the first Democrat elected to the Senate from deeply red Texas since 1988. In his victory speech, Talarico aimed straight at his deep-pocketed opponent: 'Power belongs to the people,' he said. 'The real fight in this country is not right versus left; it is top versus bottom.'

Blow two landed in the governor's mansion. Musk had backed Republican incumbent Greg Abbott, who was chasing a fourth term. Democrat Gina Hinojosa beat him, becoming Texas' first Democratic governor since Ann Richards in 1991 and only the third woman to hold the office.

The losses aren't just about pride. Musk has planted his business empire in Texas: Tesla runs its largest US vehicle factory outside Austin, and SpaceX fires rockets from its Starbase complex in South Texas. He was also lining up fresh investment in the state for AI and semiconductor manufacturing.

That last plan now looks shaky. Hinojosa campaigned on a moratorium on data centers until Texas passes new laws governing them — a stance that could complicate Musk's AI infrastructure ambitions. As results rolled in Tuesday, Musk fired off a post on X: 'Data centers in space looking pretty appealing right now.'

Nationally, Democrats are on track to control both the House and the Senate come January, with a result that outpaced exit-poll predictions of a mere 'blue wave.' For Musk, the Texas wipeout writes the clearest chapter of a rough night.