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Musk's Texas Bet Tested

Musk's Texas Bet Tested

Democratic victories in the Texas gubernatorial and attorney general races could bring greater scrutiny of Elon Musk’s businesses. Attorney general-elect Nathan Johnson has pledged to investigate grants awarded to Starlink, while governor-elect Gina Hinojosa has vowed to halt construction of new data centers—a move that could disrupt SpaceX’s plans to expand into AI. SpaceX and Tesla shares fell by more than 3% after the election, amid concerns about potential regulations affecting data centers, rocket launches, and self-driving Robotaxis. Analysts say the future of data-center plans in Texas and possible restrictions on the Robotaxi service are a source of concern for investors.

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