Musk spent at least $474 million on midterms as PAC-backed candidates lost, CNBC finds

Elon Musk spent at least $474 million on the 2026 midterms, but most candidates backed by his America PAC lost, according to CNBC’s campaign-finance analysis published November 4. Nearly half his spending went to Texas, where Republican defeats put a critic of corporate subsidies and new data centers in the governor’s office.

Where the money went

CNBC calculated Musk’s spending from campaign-finance records, including $224 million directed into Texas. His favored candidates there—Republican Senate nominee Ken Paxton and Governor Greg Abbott—both lost to Democrats. Those defeats removed two potential allies in a state that hosts major Musk businesses.

The nationwide America PAC tally covers a narrower slice of Musk’s political spending. CNBC’s analysis of Federal Election Commission filings found nearly $87 million spent across 44 federal races. By Wednesday morning, its Republican candidates had lost 29 contests and won three; another 12 remained uncalled.

More than $80 million of the PAC’s spending went toward races Republicans lost. The results were not final across all 44 contests, but the losses already accounted for 93% of its spending. That percentage measures money directed to losing races, not the share of candidates defeated.

Texas puts permits and power in play

The business connection runs through state decisions about electricity, water, environmental permits, infrastructure and tax incentives. Musk’s Texas operations depend heavily on those decisions. A change in the governor’s office can therefore affect the conditions under which projects proceed, even without a wholesale rewrite of state law.

Tesla operates its largest U.S. vehicle factory outside Austin, while SpaceX launches rockets from its Starbase complex in South Texas. Musk is also pursuing investments in AI and semiconductor manufacturing. The exposure extends beyond a single proposed data center to an established industrial presence and further expansion plans.

Governor-elect Gina Hinojosa campaigned against generous corporate subsidies and Musk himself. Her data-center proposals would change both whether new facilities can advance and who pays for their electricity needs. CNBC identified three positions:

• A moratorium on new data centers.
• An end to industry tax breaks.
• Requirements that developers cover their full electricity costs.

These are policy positions, not new restrictions. Republicans still control the Texas Legislature, limiting Hinojosa’s power to overhaul state policy. CNBC said tougher permitting and business-incentive decisions could hinder Musk’s expansion plans, but there is no confirmed halt to his projects.

Fewer allies, with checks on a reversal

The defeats leave Musk with fewer allies in a Democratic-controlled Congress. CNBC said lawmakers could investigate his companies’ federal contracts, their Washington ties and his past leadership of President Donald Trump’s Department of Government Efficiency. That scrutiny could slow SpaceX’s government-contract business, but no congressional action has been announced.

Trump still controls executive agencies and holds veto power, limiting Democrats’ ability to reverse policies benefiting Musk’s defense-technology businesses. The election changes who can apply pressure in Congress, but it does not transfer every federal policy lever. That distinction matters when translating electoral losses into expectations for contracts or regulation.