Elon Musk's business empire braces for Democratic wave as Texas flips blue
TSLA•Elon Musk's companies face potential scrutiny and slower data-center approvals after Democrats won both chambers of Congress and Gina Hinojosa defeated Greg Abbott in Texas. SpaceX shares fell 5.5% and Tesla shares fell 5.1%, lagging the broader market.
1. Election brings scrutiny
Democrats seized both chambers of Congress, and Gina Hinojosa defeated Greg Abbott in the Texas governor's race. Musk had spent nearly half a billion dollars backing Republican candidates and trying to keep Texas red; he urged X followers to vote Republican as recently as Tuesday.
2. Data-center challenges
Analysts and experts expect Democrats to tighten scrutiny of data-center projects and push for construction moratoriums as local opposition grows over electricity costs. Hinojosa has called for an immediate halt to new projects until lawmakers strengthen protections for local communities, as well as an end to tax breaks.
3. Expansion plans at risk
SpaceX aims to raise data-center capacity from 1.7 gigawatts at September-end to as much as 3 gigawatts by year-end, then to 13 gigawatts next year. The article says delays could hamper Musk's revenue targets. Hinojosa has also opposed a potential sale of a beachfront state park to SpaceX.
