The tech billionaire donated at least $474 million to Republican candidates ahead of the 2026 midterm elections, Fortune reported, yet the Republicans were defeated in the House and Senate. While the election results were a clear setback, political scientist Alex Keena of Virginia Commonwealth University said Musk’s influence may endure: “He basically gets to steer a political party. This is one of the biggest influences of money. It’s not just about who wins. It’s about setting the agenda and what types of issues we talk about.”
The midterm context saw a strong Democratic performance, described by some as a “blue wave” or “blue tsunami,” which also affected global markets. U.S. S&P 500 futures rose slightly after the index rose 1.58% yesterday on the midterm results, and European stocks followed suit. But Asian markets fell sharply: South Korea’s KOSPI dropped 5.28%, Japan’s Nikkei 225 fell 1.79%, as traders sold chipmakers on the assumption that Democratic restrictions on new AI data centers in the U.S. might reduce demand.
Musk’s own holdings felt the pain. SpaceX and Tesla stock declined 7.6% and 5.7% respectively in overnight trading after election day, contributing to a roughly $30 billion drop in his net worth on paper. The losses continued the next day, with SpaceX down another 3.8% and Tesla down 3.34%.
Separately, Fortune reported that the surge in AI-related tech imports is weighing on U.S. GDP. ING’s James Knightley noted that the U.S. ran a $64 billion trade deficit in tech products in September alone, out of a total trade deficit of $105 billion. “Tech products that are destined for data centres around the country have not merely gone exponential, but almost vertical,” he wrote. He added that the deficit benefits suppliers like South Korea and Taiwan, with U.S. imports from the two countries up 35% and 60% respectively. “Only three years ago, the U.S. was a net exporter of tech products!”
In the markets, Brent crude fell to $96 per barrel, while Bitcoin rose to $80,284. Total trading on Kalshi’s prediction market for the midterms exceeded $2.5 billion, up from $1.3 billion in 2024, according to Kalshi's head of politics, Ben Freeman.