Elon Musk's relationship with Texas political leadership has come under close examination as the midterm elections near. Federal Election Commission filings reveal that Musk has contributed at least $158 million to super PACs backing Attorney General Ken Paxton's Senate campaign. Last week, Musk explicitly endorsed Paxton on X, stating that the fate of Texas and America is at stake. Additionally, newly released state campaign documents show Musk donated $5 million to Governor Greg Abbott's reelection bid, making him the governor's single largest donor.
The closeness of these ties has sparked legal battles over transparency. State Representative Gina Hinojosa, who is challenging Abbott, sued to access 1,400 pages of correspondence between the governor and Musk. While Abbott's office previously attempted to block the release by describing the communications as too intimate and embarrassing, a judge recently ruled that Abbott had illegally obstructed Hinojosa's right to inspect the documents. Although Abbott has appealed the decision, a hearing is scheduled for November 2, just one day before the election.
Critics argue that Musk's financial influence is directly impacting these races. James Talarico, Paxton's Senate opponent, has campaigned by highlighting Paxton's legal history, including felony securities fraud charges and an impeachment acquittal. At a recent event in El Paso, Talarico accused Musk of attempting to buy the Senate seat, calling him Paxton's ultimate megadonor.
Musk's political engagement in Texas predates the current election cycle, coinciding with his relocation of Tesla's headquarters to Austin in 2021 and SpaceX's move to Starbase in 2024. Sources indicate that since 2021, the Texas executive branch has increasingly directed the Attorney General's office on specific investigations, shifting away from standard procedures based on public complaints. This pattern emerged notably in 2022 when Paxton's office launched an investigation into Twitter shortly after Musk threatened to abandon a $44 billion acquisition deal over bot count discrepancies.
Further instances of coordinated action include Paxton's office investigating Media Matters immediately after Musk sued the watchdog for defamation regarding X's ad placement policies. Similarly, following Musk's 2024 antitrust lawsuit against major advertisers, Paxton announced an investigation into a potential anticompetitive scheme without explicitly naming X. When the Department of Justice warned Musk that his America PAC sweepstakes might violate federal election law, Paxton intervened by filing a FOIA request, accusing the government of intimidating the businessman.
Recent state actions have also provided significant financial benefits to Musk's enterprises. This summer, Texas legislators called for an audit after $110 million in broadband grants were allocated to Starlink. Furthermore, the Office of the Comptroller announced a $1.66 billion tax break for Terafab, Musk's proposed chip manufacturing facility in Grimes County, while SpaceX has received approximately $30 million in state grants.
Sources: WIRED.