Musk bet big on keeping Texas red. What happens to his business empire now?

Key Points:

• Elon Musk invested nearly $500 million in the midterm elections, mainly to support Republicans like Ken Paxton in Texas, but Democrat James Talarico won the Senate race, and other Democratic victories in Texas pose challenges for Musk's companies SpaceX and Tesla.
• Newly elected Texas officials, Attorney General Nathan Johnson and Governor Gina Hinojosa, have targeted Musk’s businesses, with Johnson planning to investigate SpaceX’s Starlink broadband grants and Hinojosa proposing a moratorium on new data center construction crucial to SpaceX’s and Tesla’s AI ambitions.
• SpaceX’s plans for major data center investments in Texas, including the large Colossal 3 facility, face potential setbacks due to Hinojosa’s opposition, contributing to a drop in SpaceX and Tesla shares despite gains in the broader tech market.
• Musk may also encounter increased regulatory scrutiny over SpaceX’s Texas spaceport "Starbase," as local residents’ complaints about sonic booms could receive more support from the new governor, potentially affecting launch operations.
• Tesla’s future robotaxi service, heavily reliant on Texas markets, could face regulatory hurdles under the new administration, complicating Musk’s vision of shifting Tesla’s business model from car sales to ride services.