SpaceX · AI · Analysis · 4 Nov 2026

Texas elects a Democratic governor, and SpaceX's data center plans face a new risk

The AP called the Texas governor's race for Democrat Gina Hinojosa, who campaigned on an immediate moratorium on new data centers. Democrats also won control of both houses of Congress, per the AP. SpaceX and Tesla shares fell before Wednesday's open. Hinojosa's moratorium is still a campaign pledge, and SpaceX's gigawatt targets are still plans (as of 4 Nov 2026).

From Alex RSpaceX · AI · Analysis

Updated 9 Nov 2026

The editor holds Tesla and SpaceX shares. Supercharged Daily is independent and not affiliated with either company. Nothing here is financial advice.

What the results show

• Governor: Democrat Gina Hinojosa defeated Republican Gov. Greg Abbott, according to an AP race call late on Tuesday, 3 Nov. She will be the state's first Democratic governor since Ann Richards left office in 1995, and she takes office in January 2027, NPR reports.
• US Senate: Democrat James Talarico defeated Republican Ken Paxton and flipped a Texas Senate seat, per the AP.
• Congress: Democrats won control of both the House and the Senate, the AP reports.

Votes were still being counted on Wednesday morning. Those are the two statewide races I checked. I haven't verified results for the Texas Legislature, so this piece doesn't say Texas as a whole "flipped."

How the shares moved

Premarket figures varied with the time of each report. Bloomberg had Tesla down about 5% and SpaceX down 6.9% (via Hindustan Times). Reuters had SpaceX down 3.8% and Tesla down 3.6% (via Investing.com). CNBC said SpaceX shed 7%.

Elon Musk posted at 1:12am ET on Wednesday (10:12pm PT Tuesday): "Data centers in space looking pretty appealing right now."

Why a moratorium matters more to SpaceX than to Tesla

Hinojosa has called for an immediate halt to new data center projects until lawmakers strengthen protections for local communities, along with an end to tax breaks, Reuters reports. That is a campaign position. She hasn't taken office, and nothing has been enacted.

SpaceX's numbers show why it has more at stake. Reuters says SpaceX had 1.7 gigawatts of AI capacity at the end of September. It aims for as much as 3 GW by year-end and 13 GW next year. Those are targets, not built capacity. Its two big operating sites, Colossus and Colossus II, are near Memphis, Tennessee, outside Texas.

The growth is where the risk sits. Chip research firm SemiAnalysis has identified more than 9 GW of planned or developing capacity, Reuters reported, including new facilities at SpaceX's Starbase complex in Boca Chica, Texas. Hinojosa has also opposed a potential sale of a beachfront state park to SpaceX: "Let me be clear: Texas is not for sale," she said last month, per Reuters.

Texas is a big part of the national pipeline. Wells Fargo estimates 27% of planned US data center gigawatts are in the state, CNBC reports.

Tesla's direct exposure to data center rules is smaller. Its stock is tied into the same story through the possible Tesla–SpaceX combination. The merger is still exploratory, with no terms agreed. Bloomberg has reported a push to announce a deal in the first half of next year so it can close while President Trump is in office. Congress can't kill a deal on its own, First New York's Vikram Rai told Bloomberg, but an empowered Democratic majority may be able to slow it down.

My read

Space data centers are a long-term bet. Reuters notes cooling and repairs in orbit are major challenges, and nothing in space will stand in for 13 GW on the ground next year. The practical question is where SpaceX puts its next sites. If Texas does restrict new projects, states like Tennessee, which already hosts Colossus, could look more attractive.

Two things to watch: whether a moratorium proposal moves once Hinojosa takes office, and whether SpaceX names new sites outside Texas in its next update.

Musk spent at least $474 million on the midterms, $224 million of it in Texas, where Abbott and Paxton lost, CNBC reported.

Sources: AP on the Texas governor race, Texas Senate race and control of Congress; NPR; CNBC (4 Nov 2026); Reuters via Investing.com; Bloomberg via Hindustan Times; @elonmusk on X. Figures as of 4 Nov 2026.

— Alex R