Musk Faces Congressional Scrutiny After Midterms

Elon Musk faces intensified scrutiny from Democratic lawmakers following their victory in the midterms. The billionaire controls Tesla and SpaceX, two companies that have secured billions in federal contracts. With Democrats now holding majorities in both chambers of Congress, officials plan to examine his financial ties to the Trump administration.

Musk spent more than $200 million in Texas to support Republican candidates in the state. He poured at least $225 million into the Texas race, backing Senate candidate Ken Paxton and Governor Greg Abbott. Both men lost their bids, ending a wave of Republican control in the state.

The billionaire donated over $445 million to Republican candidates and political action committees nationwide. Federal filings identify him as the top donor in the midterms. He is also among the largest political donors in American history, according to OpenSecrets.

Democrats say they will investigate whether Musk used his position in the Department of Government Efficiency to benefit his own businesses. During the four months he led the department, he received at least $6.3 billion in government contracts. Since then, his companies have gained at least another $10 billion in federal awards, according to the Democracy Defenders Fund.

Rep. James Walkinshaw of Virginia called for an oath-bound inquiry into the process. "The DOGE chickens are coming home to roost," Walkinshaw wrote on X. He accused Musk of firing public servants and lying about savings.

Sen. Chris Coons of Delaware also targeted Musk's foreign dealings. Coons noted that Musk maintains links to Russian President Vladimir Putin. He intends to add these ties to a list of questions for a subpoena.

Rep. Mike Levin of California focused on Starlink, a satellite internet service vital to Ukraine. Levin pointed out that Musk restricted Ukraine's use of Starlink days after Trump eased sanctions on Russia. "How on earth did we get to this point?" Levin asked on X, questioning Musk's accountability.

Richard Painter, a former White House ethics lawyer, noted that Musk was a part-time special government employee during his DOGE tenure. Under federal law, such personnel are prohibited from participating in matters affecting their personal financial interests. "If [Musk] touched anything that he knew would have an impact on SpaceX, he would've committed a crime," Painter said.

Texas serves as the nerve center for Musk's business empire. Tesla and X are based in Austin, while SpaceX operates from southern Texas. Neuralink and The Boring Company are also headquartered in the state. SpaceX is exploring sites for large data centers, and Tesla operates the Giga Texas facility. A $16.8 billion semiconductor project for SpaceXAI was announced in August.

James Talarico defeated Paxton in the Senate race. At a rally in Lubbock, Talarico said, "Elon Musk wants our land. He wants our water. He wants our tax dollars." In his victory speech on Tuesday, Talarico addressed the billionaire directly. "Power belongs to the people," Talarico said. "The real fight in this country is not right versus left; it is top versus bottom."

Musk did not respond to a request for comment. As results came in on Tuesday night, he wrote on X, "Guess my election-interfering space lasers didn't work this time." He added a shrug emoji to the post.

Markets reacted to the midterm results on Wednesday. SpaceX shares fell nearly 4%, while Tesla dropped 3%. The declines occurred even as broader markets rose following the Democratic wins.