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Democrats swept Congress and Texas despite Elon Musk's massive Republican spending. The victories could intensify scrutiny of his government role, contracts and businesses.
Musk's election spending under scanner as Democrats prepare congressional probes (Photo: Reuters)
Elon Musk, who was not on the ballot in the US midterm elections, could face significant political and business challenges after Democrats secured sweeping victories in the House and Senate. The election results have raised the possibility of congressional investigations into his government dealings, his role in the Trump administration and the billions of dollars in contracts awarded to his companies.
Musk, who controls Tesla and SpaceX, spent more than USD 445 million supporting Republican candidates, political action committees and outside groups during the midterm elections, making him the biggest donor in the polls, according to federal election filings analysed by OpenSecrets.
Texas emerged as a major battleground for the billionaire, who directed at least USD 225 million towards Republican candidates in the state. His spending included support for Republican Ken Paxton's Senate bid and Governor Greg Abbott's re-election campaign. However, both candidates lost as Democrats captured every statewide office in Texas.
MUSK'S MASSIVE BET ON REPUBLICANS
Musk has increasingly made Texas the centre of his business empire. Tesla's corporate headquarters and a major vehicle manufacturing facility are located in Austin, while SpaceX, X, Neuralink and The Boring Company also have significant operations in the state.
His substantial financial backing of Republican candidates, however, failed to deliver the desired results. Democratic Senate candidate James Talarico defeated Paxton, dealing a major blow to Musk's efforts to influence the state's political landscape.
Talarico had accused Musk of trying to buy political influence in Texas, saying the billionaire wanted the state's land, water, taxpayer money and a US senator of his choice.
Addressing the election outcome, Talarico said in his victory speech that power belonged to the people, not billionaire donors.
DEMOCRATS TARGET MUSK'S DOGE ROLE
With Democrats gaining control of Congress, lawmakers are expected to examine Musk's involvement in the Department of Government Efficiency (DOGE), which he led during the initial months of US President Donald Trump's second term.
The central question is whether Musk used his position within the administration to benefit his own businesses and whether taxpayer money, government data and public institutions were put at risk.
According to the Democracy Defenders Fund, a legal advocacy nonprofit, Musk received at least USD 6.3 billion in government contracts during the four months he led DOGE. His companies have secured at least another USD 10 billion in contracts since then.
Democratic Representative James Walkinshaw said Musk must answer questions under oath about the government cuts and the savings claimed by DOGE.
Richard Painter, a former chief White House ethics lawyer under President George W Bush, said Musk could have violated federal law if he participated in official matters affecting his personal financial interests while serving as a special government employee.
Painter pointed out that SpaceX receives substantial government contracts from NASA and the Department of Defense.
MUSK'S RUSSIA LINKS ALSO UNDER SCRUTINY
Musk's international dealings have also attracted attention from Democratic lawmakers. Senator Chris Coons of Delaware raised questions about the billionaire's alleged links with Russian President Vladimir Putin, saying they would be among the issues he would raise when subpoenaing Musk.
Representative Mike Levin of California also questioned Musk's decision to restrict Ukraine's use of his Starlink satellite internet service.
Starlink and its military-grade counterpart, Starshield, play a crucial role in Ukraine's civilian infrastructure, frontline communications and drone operations in its war against Russia.
Levin questioned how Musk could disrupt a US ally's military operations while maintaining alleged links with the Kremlin without facing accountability.
TEXAS DEFEAT DEALS BLOW TO MUSK
The election results also coincided with a decline in the stock prices of Musk's companies. SpaceX shares fell nearly 4 per cent and Tesla dropped 3 per cent on Wednesday, even as broader markets rose following the Democrats' victories.
Texas has also become important to Musk's future business expansion. SpaceX is reportedly exploring sites in the state for large data centres, while Tesla operates its massive Giga Texas facility in Austin. Plans for a USD 16.8 billion SpaceXAI semiconductor fabrication project in Texas were also announced in August.
Musk had repeatedly attacked Talarico on X during the campaign. In a November 1 post, he wrote, "Talarico will vote to trans your kids."
Reacting to the election results on Tuesday night, Musk posted on X, "Guess my election-interfering space lasers didn't work this time," followed by a shrug emoji.
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