From Ars Technica · · 3m
Texas turns blue, Musk's empire faces uncertainty
After investing heavily in Texas Republicans, Elon Musk watches the state flip Democratic. What happens to SpaceX, his political ambitions, and his relationship with the new government?
In brief
After investing heavily in Texas Republicans, Elon Musk watches the state flip Democratic. What happens to SpaceX, his political ambitions, and his relationship with the new government? Texas elected Democrats in the twenty twenty-six midterms after Musk spent nearly half a billion dollars backing Republicans, leaving…
Musk bet big on Texas Republicans
Following disputes with California authorities during COVID-nineteen, Elon Musk moved to Texas outside Austin in twenty twenty.
Massive expansion announced
This summer, SpaceX announced Terafab, described as the most epic-chip building effort in the world, would be built in Grimes County, Texas.
Musk praised Texas political climate
Musk repeatedly said he loves Texas' political climate, its regulatory environment, and the state's Republican leaders.In July, Texas Governor Greg Abbott praised Musk as the leading visionary of our time, comparing him to Thomas Edison.
“the leading visionary of our time. Thomas Edison. Just like that, maybe even bigger.”
Musk invests in Republican campaigns
During the twenty twenty-six midterms, Musk invested nearly half a billion dollars in Republican election campaigns through his America PAC and other organizations, according to The New York Times.
Texas turns blue in historic shift
On Tuesday, a historic blue wave washed over the formerly deep-red state. Most of Musk's political friends in Texas will soon be gone, leaving his political position in the state fundamentally altered.
Musk's muted response
Throughout Tuesday evening as Republicans headed for historic defeat, Musk remained uncharacteristically quiet. His first comment came twelve minutes after midnight in Texas, after key statewide races had been called.
Data centers in space appeal
Musk wrote, Data centers in space looking pretty appealing right now. He then tried sarcastic humor before promoting SpaceX's AI Grok bot and Starlink Internet service.
“Data centers in space looking pretty appealing right now”
Two political paths forward
Musk can lean further into Republicans and far-right politics, becoming a kingmaker for the twenty twenty-eight presidential nominee and expanding in other red states. Alternatively, he could moderate politically, consistent with his past behavior.
Democrats' bargaining position
Democrats could treat Musk as someone to investigate or someone to bargain with. Musk is investing in domestic manufacturing and chip fabs and creating thousands of industrial jobs, many in red and purple districts Democrats…
Talarico's victory and message
Texas Senator-elect James Talarico, whom Musk demonized and spent heavily to defeat, said in his post-election speech, We sent a crystal-clear message to the people at the top: We will not be conquered.
“We sent a crystal-clear message to the people at the top: We will not be conquered.”
SpaceX operations remain entrenched
SpaceX has bulk operations in California, Texas, and Florida.No one expects SpaceX to relocate its headquarters from Texas soon.
Democratic opposition to data centers
Musk foresees Democrats, including Texas Governor-elect Gina Hinojosa, following through on campaign promises to slow deployment of terrestrial data centers.
Louisiana becomes strategic focus
This may accelerate Musk's move to Louisiana, which remains reliably red despite a surprisingly close US Senate election.SpaceX plans major expansion there starting as early as next year, and it could eventually become Starbase Louisiana.
Democrats weigh investigation option
Democrats could investigate Musk's role in shutting off Starlink and Starshield services to Ukraine in its war against Russia, his other business deals, and his campaign spending.However, Trump could shield Musk from federal enforcement actions.
NASA and Space Force need SpaceX
NASA and the Space Force need SpaceX more now than SpaceX needs the US government and its funding. Punishing SpaceX by taking away space contracts would severely impair NASA's International Space Station and Artemis Programs.
What to remember
Texas elected Democrats in the twenty twenty-six midterms after Musk spent nearly half a billion dollars backing Republicans, leaving his political allies in the state defeated and his future relationship with Texas government unclear.
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