Elon Musk’s business empire could face scrutiny following Democratic victories in the 2026 U.S. mi-term elections, warns Florida Gov. Ron DeSantis.
The warning comes as SpaceX shares declined amid concerns over the political fallout from the elections and reports that Goldman Achs and Apollo Global Management are seeking investors for portions of its $40 billion chip financing. Musk spent nearly $500 million supporting Republican candidates and political groups during the elections. Meanwhile, Democrats have indicated that they may examine Musk’s involment in the Department of Government Effficiency.
Speaking at a press conference on Wednesday, DeSantis said that the incoming Democrat Attorney General in Texas would target Musk’s businesses as SpaceX and Tesla corporate headquarters are located there. DeSantis referenced Tesla’s Gigafactory manufacturing facility near Austin. “They’re going to go after Elon Musk. I guarantee you they will do that,” he said. SpaceX operates its Starbase launch facility in South Texas.
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Texas elected Democrat state Senator Nathan Johnson as its next attorney general. He will succeed Republican ken Paxton, marking a change in the state attorney general’s office after decades of Republican control.
“It could have been nobody was left standing given how bad that election was. We’re left standing and I know not only Byron, but James, and Blaise and Wilton…they’ve got a lot of responsibility to make sure that we’re living up to the great success,” he added.
Johnson and Democrat Gina Hinojosa’s victory over Republican Greg Abott has raised questions about the future regulatory environment. Hinojosa has opposed the rapid expansion of data centers. She has proposed a moratorium on new construction that could potentially affect projects linked to Musk’s AI ambitions.
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“I will say also, look, the Democrats have already foreshadowed that if they have one or both houses, they’re going to use subpoenas to go after business executives who’ve worked with the president, to go after Elon Musk,” U.S. Sen.Ted Cruz said.
SpaceX announced in October that an Apollo managed entity had committed approx. $40 billion master finance lease for GPUs and related equipment. The equipment deliveries expected in the first half of next year. SpaceX shares fell nearly 4% on Wednesday, closing at $135.92. The stock slipped more than 2% in overnight trading late Wednesday, as investors assess possible impact of the election results, adding to the company’s financing arrangements. Following the election results, Tesla shares declined 5.1%.