Spending nearly $500 million still failed to sway the election results! Musk's political strategy is far from over, and he may invest more funds in 2028
Elon Musk's political investments have not ended with the conclusion of the U.S. midterm elections. Despite spending nearly $500 million in this election cycle and seeing the Republican candidates he supported lose in several key districts, this political gamble has not been without commercial returns.
Since Trump's election in 2024, Musk's SpaceX has secured billions of dollars in government contracts, and Tesla has benefited from the Trump administration's relatively lenient regulatory stance on the AI industry. Musk's personal net worth has risen from about $300 billion at the time of Trump's election to nearly $1 trillion.
Now that the Democrats have regained control of both houses of Congress, there are calls to cut government funding for SpaceX, and even proposals to nationalize the company. Meanwhile, Musk has publicly listed the 2028 election as one of his greatest political risks.
The world's richest businessman faced setbacks in the midterm elections, but he clearly is not prepared to withdraw from U.S. politics.
### Nearly $500 Million Bet on Republicans, Texas Becomes the Biggest Loss Battleground
Musk showed signs of a brief political retreat. In 2025, he had a heated argument with Trump on social media, leading some to believe that this conflict might push him away from politics.
At that time, Musk was also seeking Tesla shareholders' approval for what could become the largest executive compensation plan in history. The shareholder voting documents approved in early November 2025 indicated that this plan could grant Musk compensation of up to $1 trillion.
One of the reasons listed for the pay increase was to obtain Musk's assurance that his political activities would "gradually decrease over time."
It turned out that Musk did not scale back his political activities. During the 2026 midterm election cycle, he invested nearly $500 million, with the actual amount likely higher.
According to filings with the Federal Election Commission (FEC), these figures do not yet include donations made since mid-October. Musk has previously provided funding to so-called "dark money" organizations, which typically do not disclose their funding sources or specific donors.
Based on the amounts disclosed so far, **Musk is not only the largest political donor in 2026 but also the largest external political financier in U.S. history.**
In contrast, Bloomberg founder and majority owner Michael Bloomberg provided about $80 million to the Democrats from September to October to support the midterm elections.
However, the Democrats ultimately regained control of both houses of Congress, winning six out of seven of the most closely watched Senate races. Most of Musk's political funding was directed toward these key elections. The seventh race, the Alaska Senate election, had not yet been decided.
Musk's biggest setback occurred in Texas. He invested over $200 million in the Texas Senate election in just a few months, trying to help Republican candidate Ken Paxton fend off a challenge from Democrat James Talarico.
These funds were primarily provided through Musk's own American Political Action Committee (America PAC) and a Senate political action committee closely tied to the Republicans.
Musk also donated $5 million to Republican Texas Governor Greg Abbott. Abbott has publicly supported Musk's business activities in Texas but ultimately lost to Democratic candidate Gina Hinojosa.
Both Democratic candidates targeted Musk and his business interests in their campaign attacks.
Hinojosa had sued Abbott to obtain emails between Musk and the Texas governor. She believed these emails might involve a series of special deals aimed at funneling funds to Musk.
Last Sunday, Hinojosa stated at a rally in San Antonio, "Greg is embarrassed because he sold us out."
Talarico, who took the stage afterward, described Paxton as a political tool for the world's only trillionaire. Amid boos and jeers directed at Musk, he said, "This election is about one question: Do you want a senator who serves you, or a senator who serves a billionaire donor? And Ken Paxton has the ultimate billionaire donor."
Talarico continued, "Elon Musk wants our land, wants our water resources, wants our taxpayer money. He also wants to own a senator who is completely his."
Matt Angle, director of the left-leaning Lone Star Project, believes that **Musk's large donations have instead created an additional campaign advantage for the Democrats.**
These funds allowed Democratic candidates to link the Republicans to the issue of corporate influence over politics. Angle commented on Musk, saying, "He is the quintessential representative of greed. The old idea that as long as businesses grow, everything is good, is no longer convincing. Business growth has not put more money in the pockets of ordinary people."
Of course, this does not mean that Musk's hundreds of millions of dollars in investments were of no help to the Republicans.
The Republicans were already facing an unfavorable election environment, having to contend with unpopular wars and tariff policies, as well as the pressure from Trump's failure to deliver on promises to lower prices.
Paxton himself carries a heavy political burden. He has faced securities fraud charges, endured 20 articles of impeachment, and was involved in an allegation regarding the theft of an expensive Montblanc pen.
In the securities fraud criminal case, Paxton paid a settlement but did not admit to wrongdoing; he was acquitted in the impeachment trial. Regarding the $1,000 Montblanc pen, he explained that he simply took it by mistake.
Therefore, without Musk's financial support, Paxton might have lost by an even larger margin. It is also possible that the funds Musk originally invested in Texas would have been redirected to other states facing similar Democratic advantages.
### Behind the Political Investment, Musk's Business Empire Reaps Huge Returns
Despite the disappointing election results, from a business perspective, Musk's political investments over the past two years have already been accompanied by several significant gains.
Since 2024, SpaceX has secured billions of dollars in government contracts, the most notable being the Trump administration's "Iron Dome" missile defense system project. With a recent new personnel appointment at the Pentagon, SpaceX seems poised to secure even more government contracts.
Trump's relatively lenient regulatory stance on the AI industry has also driven significant increases in related companies and assets, including Tesla and SpaceX.
Other favorable developments also involve Musk's companies.
Tesla held a sales event on the White House South Lawn; the U.S. Department of Justice decided to intervene in a lawsuit filed by civil rights organizations against SpaceX; recently, Musk also received the National Medal of Science.
Meanwhile, his personal net worth continues to rise. From about $300 billion at the time of Trump's election in 2024 to nearly $1 trillion now, Musk's wealth has seen substantial growth.
**If political donations are viewed as an investment aimed at protecting and expanding a business empire, then in terms of government contracts, policy environment, and personal wealth growth, this investment has already yielded rich returns.**
**However, the midterm election results also bring new political risks for Musk.**
Democratic voters want to investigate those businesses that profited from connections with the Trump administration. With the Democrats regaining control of Congress, **some parts of Musk's business empire are almost certain to become subjects of oversight and investigation.**
**The controversy surrounding SpaceX's government contracts is particularly prominent. There have already been calls to cut government funding for SpaceX, and even proposals to nationalize the company.**
Musk's business operations in Texas may also face new pressures. Several of his companies are headquartered in the state, and **local Democratic lawmakers have threatened to introduce tax measures specifically targeting Musk.**
Kendall Scudder, chair of the Texas Democratic Party, said in an interview with The Huffington Post last week, "Just imagine what measures the Democrats could take to make this greedy bastard suffer; it's really interesting."
### Musk Targets 2028, Political Investments May Continue to Expand
Musk has clearly realized the risks that come with the Democrats regaining control of Congress.
Last week, amid controversy over his remarks mocking Talarico and his supporters, including claims that "Talarico wants to make your children transgender," Musk also publicly articulated his reasons for continuing to engage in politics.
He wrote on social media platform X: **"What I worry most about is that the Democrats will take the House, Senate, and presidency all at once in 2028."**
**Musk specifically mentioned 2028, sending a clear signal that he is not prepared to exit the political stage.**
Over the past two years, he has built a large email list and grassroots voter mobilization system. These resources provide a foundation for his continued participation in future elections. If he decides to further expand his political investments, future funding could easily exceed the $500 million spent in this election cycle.
At the same time, **after the Democrats take control of Congress, they may also prioritize investigating Musk as one of the ways to demonstrate government oversight. The struggle between the two sides over government contracts, corporate interests, and political influence may thus continue into the next election cycle.**
The U.S. midterm elections have cost Musk a significant political price without achieving his goal of helping the Republicans win key seats. But this does not mean that his political influence has come to an end. The game surrounding wealth, corporate interests, and political power is clearly far from over. The era of trillionaire influence in American politics may just be beginning.