Democrat Gina Hinojosa wins Texas governor election — Cyprus Mail
In the United States, Democrat Gina Hinojosa defeated Republican Greg Abbott in the Texas governor’s election, while the Democratic Party gained control of both chambers of Congress. As Cyprus Mail reports, these results were a political setback for billionaire Elon Musk, who supported Republican candidates and sought to keep Texas under Republican Party control.
According to the publication, Musk spent nearly half a billion dollars supporting Republicans. Texas is home to his carmaker Tesla, SpaceX, which operates in rocket technology and artificial intelligence, as well as a planned joint chip-manufacturing project. Ahead of the vote, Musk urged his followers on X to vote for Republicans, but later deleted the post.
Markets react with falling shares
SpaceX shares lost 3.8% in pre-market trading, while Tesla shares fell 3.6%, lagging behind the broader market. The publication names slower approval of data centers needed for artificial intelligence development as one possible challenge for Musk’s businesses.
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Analysts and experts expect Democrats to tighten oversight of such projects and may push for moratoriums on their construction. This is linked to opposition from local communities because of rising electricity costs. Jake Dollarhide, CEO of Longbow Asset Management, said that Democrats’ victory in Congress could increase regulatory pressure on the technology sector and AI development.
Position of the new governor
Hinojosa had previously sought access through the courts to correspondence between Musk and Abbott and accused the former governor of providing the businessman with favorable conditions. She also criticized Abbott’s initiatives to restrict data centers, calling them a political gesture, and advocated an immediate halt to approvals for new projects until protections for local communities are strengthened and tax breaks are abolished.
SpaceX is developing the Colossus and Colossus II data centers near Memphis and plans to increase their capacity from 1.7 gigawatts at the end of September to 3 gigawatts by the end of the year, and to 13 gigawatts next year. SemiAnalysis identified more than 9 gigawatts of planned or under-construction capacity, including new facilities at the Starbase complex in Boca Chica, Texas. Hinojosa also opposed the possible sale of a coastal state park to SpaceX.
