Robert Reich criticized Space Exploration Technologies Corp. (NASDAQ:SPCX) CEO Elon Musk’s political spending after Republican Ken Paxton suffered a double-digit defeat in the Texas Senate race, arguing that grassroots organizing can overcome the financial influence of billionaires.
Reich Criticizes Musk’s Political Spending
In a Wednesday post on X, the former U.S. Labor Secretary aimed at Musk, who spent heavily to support Paxton’s Senate bid against Democrat James Talarico.
“The richest man in the world spent more money than most people will see in a lifetime, only to lose a Senate race in Texas by double digits,” Reich wrote.
He said the result offered a reminder of the need to overturn the Supreme Court’s 2010 Citizens United decision, which expanded protections for independent political spending.
“But it’s also a reminder that organized people can still defeat organized money,” Reich added.
Democratic Wins Put Musk’s Businesses In Focus
On Tuesday, Cardone Capital founder Grant Cardone warned that Talarico’s Texas Senate victory could create challenges for SpaceX and the AI industry.
He wrote on X, “If Talarico wins Texas it won’t be good for SpaceX or the AI bet.”
Talarico had proposed stricter AI data center rules and taxes on AI profits to fund annual dividends.
Meanwhile, Musk’s net worth fell from $898 billion to roughly $875 billion after Democrats won control of Congress. Declines in Tesla and SpaceX shares wiped out an estimated $22.86 billion from his wealth.
Musk contributed an estimated $474 million to political groups during the 2026 election cycle, including substantial support for groups backing Paxton’s Senate campaign.
Democrats Score Major Midterm Victories
Democrats secured key Senate victories as Jon Ossoff (D-Ga.), Gov. Roy Cooper (D) and Mark Warner (D-Va.) won their races.
They also flipped governorships in Texas, Ohio and Georgia, with Gina Hinojosa (D), Amy Acton (D) and Keisha Lance Bottoms (D) scoring major victories.
JB Pritzker (D) won a third term in Illinois, while Republicans retained Florida with Byron Donalds’ (R) victory.
Meanwhile, President Donald Trump signaled no immediate plans for another strike against Iran.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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