Despite Spending 4,700 Crore, Musk Fails to Deliver Victory for Republicans! His Wealth Plunges by 7 Lakh Crore
Billionaire Elon Musk’s massive financial backing for the Republican Party in the US midterm elections failed to deliver the desired results. Following the Republicans’ defeat against the Democrats, Musk is facing mounting pressure on both political and business fronts. Adding to his troubles, a decline in the share prices of Tesla and SpaceX has reportedly wiped out nearly 7 lakh crore from his personal wealth in recent days.
Meanwhile, Musk has removed several posts supporting the Republicans from his social media platform, X. With Democrats gaining control of both chambers of Congress, the possibility of investigations into Musk’s business interests and his previous role in the Trump administration has also increased.
Before the elections, Elon Musk spent at least 445 million (more than 4,000 crore) supporting Republican candidates and conservative political organisations. Some reports have put the figure as high as 474 million.
Musk also invested heavily in campaigns supporting Ken Paxton in the Texas Senate race and Greg Abbott in the gubernatorial election. However, both candidates suffered defeats.
According to Reuters estimates, Musk backed 43 Republican candidates for the House of Representatives, but only three of them managed to win. Meanwhile, six out of the seven Senate candidates he supported were defeated.
On election day, Musk urged voters to support the Republicans through a post on X, writing, “Vote red today!” He had also pinned a post dated October 29. However, following the announcement of the election results, he removed those posts. His AI chatbot, Grok, also reportedly confirmed the removal of the posts.
Later, Musk sarcastically remarked that his “space lasers for election interference” had failed to work this time!
With Democrats gaining control of both chambers of Congress, Musk’s previous role in the Trump administration has once again come under the spotlight.
At the beginning of Trump’s second term, Musk headed the Department of Government Efficiency (DOGE), which was tasked with reducing government expenditure.
During that period, controversies emerged over layoffs in government departments, spending cuts and the handling of government data. Democrats have alleged that potential conflicts of interest between Musk’s private business interests and government decisions during his tenure at DOGE need to be investigated.
There are also demands for scrutiny of government contracts, grants and tax benefits received by Musk’s companies.
According to reports, the Democracy Defenders Fund claimed that Musk’s companies secured government contracts worth approximately 6.3 billion during the four months he was associated with DOGE. Other media reports have also mentioned that his companies subsequently received additional contracts worth at least 10 billion.
Furthermore, US lawmakers may raise questions about Musk’s communications with Russian President Vladimir Putin and his decisions concerning the control of Starlink services in Ukraine.
Alongside the political setback, Musk’s business empire is also facing pressure in the stock market. Following the elections, the share prices of Tesla and SpaceX reportedly declined, significantly affecting his personal fortune.
According to reports, Tesla shares fell by approximately 11 per cent on November 5, while SpaceX shares declined by around 9 per cent. Investors are concerned that with Democrats controlling Congress, scrutiny and regulatory oversight of Musk’s companies could increase.
In particular, projects involving the construction of data centres in Texas and potential collaborations between Tesla and SpaceX could face obstacles.
According to estimates by various media outlets, the decline in share values has reduced Musk’s personal wealth by approximately 80 billion to 90 billion over the past few days. This amounts to nearly 7 lakh crore in Indian currency.
Despite this massive decline in his fortune, Tesla chief Elon Musk continues to retain his position as the world’s richest person.
