Tesla's stock price fell by about 4% after Musk-backed candidates lost the mid-term elections in 2026.

According to the analysis of campaign funding records by CNBC, Elon Musk spent at least $474 million in the mid-term elections of 2026, yet many of his favored candidates were defeated. Nearly half of that funding, amounting to $224 million, went to Texas, where Republican Senate candidate Ken Paxton (Ken Paxton) and Governor Greg Abbott (Greg Abbott) were both defeated by Democrats.

Tesla's stock price fell by about 4%, and SpaceX also saw a slight decline. This outcome could pose problems for Musk's companies in Texas, as these companies rely on the state government's decisions regarding electricity, water resources, permits, and tax incentives. Tesla's largest automobile factory in the United States is located near Austin, while SpaceX is launched from the Starship base ( Starbase ).

Elected Governor Gina Hinojosa ( Gina Hinojosa ) called for a pause on the construction of new data centers and the cancellation of tax incentives for the industry. According to data from AdImpact, approximately $173 million is spent across the United States on negative advertising targeting data centers.