Musk has allocated $475 million for the elections to facilitate the merger of Tesla and SpaceX
Elon Musk has directed $475 million toward supporting Republicans ahead of the 2026 U.S. midterm congressional elections. The businessman aims to maintain political influence to avoid investigations into his companies and secure favorable conditions for the merger of Tesla and SpaceX. This was reported by Economichna Pravda citing NYT, according to the portal PromPolitInform.
Financial support for the Republican Party by the founder of SpaceX and Tesla has become unprecedented in modern U.S. history. The sum of $475 million significantly exceeds the contributions of other well-known donors, including Michael Bloomberg and George Soros. This activity is driven by an intention to minimize pressure from regulators and protect business interests in the event of a Republican victory in the elections.
Business interests and investigation risks
Musk’s political pragmatism is linked to concerns regarding potential audits by Democrats if they were to succeed in the elections. Opposition forces in Congress are already preparing the ground for a detailed examination of SpaceX’s contracts with the Pentagon and NASA, as well as the activities of the Department of Government Efficiency (DOGE), which the billionaire led for 130 days in 2025. Furthermore, security issues concerning the use of the Starlink system during military operations have come under scrutiny.
A significant portion of the funds is aimed at supporting candidates in the state of Texas, where the billionaire’s key production facilities are concentrated. This region has become the site for the construction of the $55 billion Terafab plant, which is intended to be a hub for producing semiconductors for artificial intelligence, robotics, and spacecraft. The calculation is that Republican control in Congress will ensure a more favorable tax environment and a loosening of state restrictions.
Plans for asset consolidation
An important element of Musk’s strategy is the consolidation of Tesla and SpaceX into a single technology conglomerate with a market capitalization of approximately $3.5 trillion. The merger, the initiative for which was officially announced on October 20, 2026, is intended to be implemented before the end of Donald Trump’s presidential term. Such a structure would allow for more efficient redistribution of engineering resources and obscure the financial results of individual divisions from external oversight.
While investors are generally favorable toward Musk’s plans, the merger faces serious regulatory challenges due to Tesla’s ties with China. Simultaneous ownership of a key U.S. defense contractor and an automaker dependent on the PRC market could trigger stringent requirements from agencies responsible for national security. The decisive phase of discussions regarding the deal’s terms is set to take place at the Tesla shareholders’ meeting on December 3, 2026.
Photo: Getty Images
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