Elon Musk's Empire Faces New Scrutiny as Texas Turns Democratic

Democrats swept both chambers of Congress and flipped Texas' governorship in Tuesday's midterms, delivering a major setback to Elon Musk, who spent nearly half a billion dollars backing Republican candidates and causes. Musk, the world's richest man, faces a resurgent Democratic Party he has antagonized for years, with potential probes into his companies and tighter scrutiny of his data-center projects. Shares of SpaceX and Tesla fell in premarket trading Wednesday, and analysts expect regulatory pressure on AI infrastructure. Incoming Texas Governor Gina Hinojosa has called for a moratorium on new data centers and opposed a state park sale to SpaceX, while Musk joked about moving data centers to space. His company plans to nearly double capacity by year-end.