How big money lost the 2026 midterms

After the presidential election exactly two years ago, Elon Musk and Vivek Ramaswamy rode into Washington as protagonists of a new type of politics, running the short-lived Department of Government Efficiency. Last night, both suffered the worst defeats of their political careers.

Musk had moved many of his businesses to Texas and spent more than $200 million to hold the state for Republicans — part of a 2026 blitz that dwarfs any political spending by a single donor in a single election cycle — with returns that were diminishing, if not outright negative. Senate candidate Ken Paxton's numbers faded the more Musk spent. Ramaswamy lost his bid for Ohio governor, where his Republican predecessor won four years ago by 25 points, a bigger swing than can be explained by Trump's unpopularity and the blue wave that crested nearly everywhere.

The two seemed to embody a new type of hard-edged conservative politics that lives at the intersection of Twitter and money, driven by wealthy and successful businessmen who believed their wealth and success would translate into political victories and personal popularity.

I watched last night's results from Ramaswamy's gloomy election night party at an upscale Marriott in Columbus, Ohio, where a prayer circle was going in the women's bathroom by 9:45 pm. The outcomes suggest that money and its purest embodiments will be forced to slip politely back behind the curtain, to support more relatable public figures. Ramaswamy's fellow anti-woke traveler and fringe Wall Streeter, James Fishback, lost even earlier, in the primaries for Florida governor.

The biggest money in American corporate history — the huge new investments in AI — also had a hard night, as Trump's embrace of the technology helped doom his party. Now they have to find new ways to recast their projects as pro-worker and community-friendly to make sure the AI buildout actually happens — and to find spokespeople more appealing than the DOGE twins.

Shares in Musk's Tesla and SpaceX slide about 5% in pre-market trading Wednesday after Democrats won in Texas, where both companies are headquartered.