Elon Musk's millions failed to deliver Republican wins in fierce midterms

Breaking news from the markets: Elon Musk's millions failed to deliver Republican wins in fierce midterms Figure caption, Watch: Key moments from the US midterm election resultsByKali Hays and Laura CressTechnology reportersPublished4 November 2026Elon Musk spent almost $450m (£334m) – more than anyone ever has in an election cycle – to back Republican political candidates in the US midterm races. It was not enough to keep Democrats from a resounding victory. Among the most striking wins went to Democrat James Talarico, who beat Republican Ken Paxton for a US Senate seat in Texas.

Musk spent at least $45m in support of Paxton, according to a analysis of campaign finance data. Other races where Musk spent millions included Arizona, Michigan, Wisconsin and Minnesota. His spending continued into Monday, records show.

Economic Details

By Tuesday night, Musk seemed to admit defeat, joking on X that his "election-interfering space lasers didn't work. "LIVE UPDATES: All the latest developmentsBOWEN: Trump's loss limits powers at home, but it will likely be different abroadRESULTS: How America voted in maps and chartsEXPLAINER: Five reasons why Trump did so badlyZURCHER: Midterm carnage weakens Trump but he still wields power for nowREACTION: Angry Republicans blame Trump for midterms 'disaster'NEWSLETTER: Sign up for Anthony Zurcher's analysis in your inboxThe loss this week of so many Republican seats may have significant implications for Musk and his businesses. SpaceX has gained an estimated, external $10bn in new government contracts since Trump was elected to his second non-consecutive term.

Several Democratic lawmakers have said the company's extensive and growing role in government and national security should be investigated, external. SpaceX's future development of massive data centres is also facing new potential difficulties - as are the data centre developments of other tech companies. In Georgia for instance, where SpaceX has data centre operations, the just elected Democratic governor ran in-part on limiting the rapid rise of the massive buildings, as well as the huge tax breaks tech companies usually get to build them.

A number of other politicians ran on limiting data centres and dozens of state measures to limit their development passed on Tuesday, external. Data centres are sprawling buildings that house stacks of computing hardware. Tech and artificial intelligence (AI) companies use them to run online platforms such as ChatGPT, Claude, and Musk's X and his AI company xAI.

Analyst Views

Musk posted to X on Tuesday that his previously floated idea to somehow build data centres in space was "looking pretty appealing right now. " Five reasons why Republicans lost so badly Published3 days agoDemocrats won Congress in a blue wave. Now comes the hard part.

Published3 days agoTech companies involved in AI may be in for a tougher government scrutiny and potential regulation with Democrats in power, though any legislation would need Trump's approval.

Economists are analysing what the news means for the markets.