Musk’s record Republican spending fails to prevent Democratic midterm sweep

Elon Musk’s record spending on Republican candidates failed to prevent a sweeping Democratic victory in the US midterm elections and is likely to bring increased scrutiny of his political influence and business interests. The BBC reported that Musk spent almost $450m during the election cycle, more than any other individual in a US election. His political operation backed candidates in states including Texas, Arizona, Michigan, Wisconsin and Minnesota.

One of the most notable defeats came in Texas, where Democrat James Talarico defeated Republican Ken Paxton in a Senate race. According to a BBC analysis of campaign-finance data, Musk spent at least $45m supporting Paxton. By Tuesday night, Musk appeared to acknowledge that his intervention had not produced the expected results.

He joked on X that his “election-interfering space lasers didn’t work”. The supplied reports do not indicate that he offered a fuller assessment of the Republican losses. Democrats are expected to examine Musk’s role in government and the companies connected to him.

NPR reported that investigations are likely to focus on his leadership of DOGE and government contracts. The BBC said Democratic lawmakers had already called for scrutiny of SpaceX’s growing role in government and national security. SpaceX has gained an estimated $10bn in new government contracts since Trump returned to the presidency, according to the BBC.

The change in congressional control could therefore create uncertainty around the company’s relationship with Washington, although the supplied reports do not identify any specific investigation or action that has begun. Musk’s technology interests may face pressure at state level as well. The BBC reported that elected Democrats in Georgia and elsewhere campaigned against the rapid expansion of large data centres and the tax incentives often offered to technology companies building them.

Dozens of state measures seeking to limit data-centre development passed on election day. Those facilities support online platforms and artificial-intelligence companies, including Musk’s X and xAI. Musk also said on X that building data centres in space was looking more appealing, though the report gave no details of a concrete plan.

The market reaction was mixed. Tech stocks were broadly higher on Wednesday morning, while Tesla fell 4.9% and SpaceX fell 3.4%, according to the BBC. Musk also reduced his political posting, removed or unpinned election-related material and shifted his public attention towards GrokBot.

The scale of the Democratic victory, the BBC reported, has left investors assessing the possibility of tougher scrutiny and regulation.