Musk's midterm election "high-stakes gamble" fails: $474 million all down the drain, net worth evaporates by $60 billion overnight

Elon Musk’s midterm election bet failed after Democrats won both chambers of Congress and key Texas races, with his至少 $474 million in political spending—including about $224 million in Texas—failing to deliver Republican control. Tesla and SpaceX shares fell as much as 5.7% and 7.6% premarket, cutting Musk’s paper wealth by more than $60 billion. The result matters because Texas is the headquarters and manufacturing base for both companies, and incoming Governor Gina Hinojosa is more cautious on new data centers and tax incentives, potentially delaying Tesla’s AI, robotics and autonomous driving expansion and SpaceX’s AI infrastructure buildout. Democratic congressional control may also intensify scrutiny of SpaceX government contracts and Musk’s federal cost-cutting role, while a potential Tesla-SpaceX merger could face more political uncertainty. Investors will watch Texas data-center approvals, congressional oversight and the scale and timing of Musk’s AI capital spending.