The Daily PulseBusiness
Elon Musk pledges $366 million to 2026 races as SpaceX‑Tesla merger talks surface
Reported by Tanvi Pillai (Section Editor) · CNBC - Top News ·
Confirmed by a second source: The Guardian - Business
Photo: Wikimedia CommonsPolitical Spending
Elon Musk has pledged about $366 million to the 2026 midterm election cycle, the biggest single‑person contribution recorded. At least $276 million has gone to Republican groups and his own America PAC since July, according to Federal Election Commission filings. About $189.6 million of that money is aimed at helping Republican Texas Attorney General Ken Paxton win the Senate seat, prompting Democrat James Talarico to accuse Musk of trying to “buy” the seat. Musk posted on X that anyone who fights him will “live by the sword, die by the sword.” Bruce Freed of the Center for Political Accountability said Musk’s spending is about gaining favors in Congress and shielding his companies from oversight.
Business Connections
Musk’s companies are tightly linked to Texas: Tesla’s main plant sits in Austin, SpaceX’s Starbase launch site is in South Texas, and The Boring Co. operates out of Pflugerville. The state’s officials thus influence taxes, electricity and permits that affect Musk’s businesses. SpaceX has received more than $30.7 billion in federal contracts since 2008, including $2.29 billion for a missile‑shield network and $4.16 billion for threat‑detection satellites in May 2024. In a separate development, Musk told a SpaceX earnings call that both SpaceX and Tesla have formed special committees to explore a possible merger, but no agreement has been reached and a 50 % shareholder vote would be needed.
Context
Musk’s political donations aim to protect a business empire that relies heavily on government contracts, while the merger talks signal a strategic move to combine his aerospace and automotive assets under one corporate umbrella.
ExplainerWhy this matters
What Happened
Elon Musk has poured roughly $366 million into the 2026 midterm races, mostly to Republican groups, while his two companies, SpaceX and Tesla, have set up special committees to look at a possible merger.
Why It Matters
Musk’s donations are meant to keep a Congress that will favour the tax breaks, permits and defense contracts that fuel SpaceX’s $30 billion federal work and Tesla’s Texas plant. By joining the two firms, Musk could streamline research, cut costs and create a single brand that sells rockets, satellites, AI chips and electric cars, which could shift competition in both industries and give him a louder voice in policy debates.
What Happens Next
Congress may scrutinise Musk’s donations if Democrats win control of either chamber, potentially leading to hearings or subpoenas. The merger can only proceed if at least half of Tesla’s shareholders vote in favour and both companies’ special committees reach an agreement, so investors will watch upcoming shareholder meetings and any further regulatory filings.
