Donald Trump lost the Republican majority in Congress in the midterm elections on November 3, 2026. But the shockwave also hits an ally who did not appear on any ballot: Elon Musk.
After pouring hundreds of millions of dollars into Republican campaigns, the head of Tesla and SpaceX sees most of the candidates he backed defeated, while his companies traverse a turbulent week on the stock market.
Meanwhile, American voters are calling for further restrictions on the vast data centers essential to artificial intelligence. Why do these three events concern the billionaire? And how far can change go?
The three figures to remember
445 million dollars : Musk’s campaign spending for federal campaigns, according to OpenSecrets cited by Reuters.
3 victories out of 37 : the results of Republican candidates he backed for the House, in Reuters’ tally on November 5; 33 defeats and one race still undecided.
113 billion dollars : estimated decline of his fortune during the sessions of November 4 and 5 alone, before the stock rebound on November 6.
The midterms, what exactly are they?
In the United States, the midterms are the elections held midway through the presidential term. Voters renew the entire House of Representatives and about a third of the Senate. This time, the Democrats won the majority in both chambers, while Donald Trump remains president.
This distinction is important: Trump does not leave the White House. But Congress can pass laws, control the use of public funds, and question officials or companies in the context of parliamentary investigations. The new majority will take office in January 2027.
445 million dollars spent: a political bet largely thwarted
Elon Musk was not a candidate. His involvement took another form: funding campaigns, backing Republicans, and mobilizing on his social network X. In the United States, organizations called super PACs can spend very large sums on political advertising, without the money necessarily being given directly to candidates.
According to the tracking group OpenSecrets, cited by Reuters on November 5, Musk spent 445 million dollars in federal elections. This amount does not necessarily include all indirect spending or local campaigns. It therefore may not represent the exhaustive cost of his political engagement.
The tally of the supported candidates, at Reuters’ tally on November 5, illustrates the limits of this funding: out of 37 Republicans backed in the House, three won, 33 lost, and one race remained undecided.
In the Senate, six of the seven candidates involved had lost, the seventh race still being counted. Receiving Musk’s support does not, by itself, explain every defeat.
Texas, a strategic state for Musk, has tipped
Texas concentrates a large part of Musk’s American activities: Tesla has industrial facilities there, SpaceX conducts space activities there, and the group is betting on new computing infrastructures. The election there therefore carried particular importance.
According to Reuters, Musk devoted nearly 230 million dollars to the Texas Senate race, as well as five million to the governorship race and 500,000 dollars to the lieutenant-governor race.
In the Senate campaign, 153.5 million dollars of negative advertising targeted Democrat James Talarico, who was ultimately elected. This amount pertains to the Senate campaign expenditures: it should not be added again to the total for that race.
The Democrat Gina Hinojosa also won the governorship against Republican Greg Abbott. The change is particularly watched by tech companies, as local authorities and states play a decisive role in permitting, power connections and certain tax incentives.
Why would Musk have lost 113 billion dollars in two days?
Here, one must distinguish the estimated fortune of a billionaire from the money he has in a bank account. A large portion of Musk’s wealth is tied to the shares he holds in his companies. When their price falls, the theoretical value of this stake also falls.
According to Bloomberg’s Billionaires Index, reported by Fortune, his estimated wealth declined by about 33.5 billion dollars on Wednesday, November 4, then by 79.7 billion on Thursday, November 5, for a total of 113.2 billion over two sessions, rounded to 113 billion.
This is a loss of valuation, not a cash outflow of that size.
Tesla and SpaceX shares, however, rebounded on Friday, November 6. Comparing the day-of-election closes to Friday’s closes helps avoid freezing the tally at the lowest point:
| Company | November 3 | November 6 |
| Tesla | $398.50 | $358.22 |
| SpaceX | $141.31 | $134.27 |
Change between these two closes: Tesla: −10.1% ; SpaceX: −5.0%.
Closing prices in U.S. dollars. Changes calculated by TN from Yahoo Finance (Tesla) and Stock Analysis (SpaceX). These figures cover the period from November 3 to November 6, and not just Friday’s session.
Both stocks thus end the week below their November 3 level, but with a rebound on Friday. The decline is not proof that Tesla or SpaceX immediately lost the same percentage of customers, sales, or production.
Why are the markets now watching Washington?
Tesla sells electric vehicles and energy storage equipment in particular. SpaceX builds rockets, operates the Starlink satellite network, and is also developing artificial intelligence activities since its rapprochement with xAI.
The group sells services to private clients, but also works with the U.S. federal government.
However, several Democratic lawmakers have announced their intention to examine certain public contracts of SpaceX, the Starlink activities, and Musk’s move to the Department of Government Efficiency (DOGE), tasked with reducing government spending.
Questions have also been raised about the use of Starlink in the war in Ukraine and possible conflicts of interest.
At this stage, these statements amount to plans for parliamentary oversight and requests for explanations. They do not constitute either a condemnation or an announced cancellation of a contract.
Moreover, the drop in tech values during the week also affected other companies beyond Musk’s, in a climate of concern about the cost of AI.
Data centers, another front much less known
A data center is a complex of buildings filled with computer servers. These machines run applications, store information, and train artificial intelligence systems.
To power them and cool them, a lot of electricity is required and sometimes substantial water resources.
The development of these facilities has sparked local opposition in the United States: some residents fear higher bills, pressure on water, and decisions made without consultation. This debate goes beyond Musk and concerns the entire tech sector.
According to Ballotpedia’s report on November 6, in 40 of the 41 local referendums on November 3 concerning data centers, voters chose a stance unfavorable to their expansion.
These referendums concerned bans, restrictions, moratoriums, zoning rules, or advisory measures. They do not correspond to 40 Musk projects being canceled.
In Texas, getting permits is tougher?
Gina Hinojosa, who is due to take office on January 19, 2027, argued during her campaign for a pause in issuing new data center permits, until rules protecting residents, water, and electricity consumers are adopted.
A freeze on certain procedures already existed under outgoing Governor Greg Abbott, to examine the effects of these projects on the power grid and the environment.
The possible difference thus lies in the duration of the pause and in the new conditions for resumption, not in a general ban already in effect.
For groups aiming to rapidly open computing capacities, every month of delay can weigh on investments, equipment orders, and contracts with customers.
But already authorized facilities are not automatically halted: effects will depend on the rules actually adopted and the status of each project.
Should we expect a standstill for his companies?
The ballot changes the balance of power, without stripping President Trump of all his prerogatives. He still retains, notably, a veto on federal legislative texts.
Congressional oversight, state decisions and financial markets follow, for their part, distinct mechanisms.
The verdict is therefore mixed. The electoral results of Musk-backed candidates are unfavorable according to the available tally, and the value of his holdings has swung strongly.
The lasting consequences for Tesla, SpaceX or his data centers remain, however, linked to political, administrative and economic decisions that have not all been made.
After the elections, the same question thus arises for Musk: how far can his political influence facilitate his companies’ projects when voters, local authorities and the Congress defend other priorities?
