Elon's Epic Loss Is a Massive Gift for These Stocks

Over the past two years, Elon Musk bet big on Donald Trump, pouring more than $750 million into Republican campaigns.

That money bought him unprecedented access and blatant favoritism from his biggest client — the U.S. government.

But last week, his big bet backfired in a big way.

A month and a half from now, he’ll be facing a firing squad made up of the very politicians he paid so much to keep out of power.

And it’s set to unleash a barrage of investigations, regulations, and subpoenas at him and his companies.

Indeed, Elon spent two years wielding unchecked government influence like it was his own personal chainsaw. Now he’s going to find out it cuts both ways.

You Reap What You Sow

Over the past few years, Elon didn’t just dabble in politics — he bought in wholesale.

He spent more than $290 million getting Trump elected in 2024. And he spent another $474 million on this year’s midterms, more than any political donor in American history.

That money paid off… for a while.

Musk went from the boardroom to the Oval Office. He had the president’s ear, a seat at the cabinet table, and an entire government department put at his disposal.

DOGE cut more than 250,000 federal jobs and dismantled USAID. Its operatives got their hands on some of the most sensitive data the government holds, including Social Security records and classified information from the Defense Department.

With that, Musk’s companies collected $6.3 billion in government contracts while he ran DOGE, and at least $10 billion more since he left.

SpaceX won five of the seven national security launch missions the Space Force awarded for fiscal 2026. It holds more than $8 billion in Golden Dome contracts, roughly a third of everything the program has committed so far.

Musk’s cronies have done pretty well for themselves, too.

This summer, four DOGE alumni — two of them SpaceX veterans — launched an AI military cyber startup called Cathedral. One co-founder was the Pentagon’s chief data officer until recently.

Venture investors handed them $160 million at a $1.4 billion valuation before they’d landed a single confirmed Pentagon contract.

These people spent a year inside the government’s systems, and now they’re lining up to cash in on what they found.

That’s what $750 million buys you in Washington.

But now comes the reckoning.

Last week, Democrats took the House and the Senate. And in Texas — the state Musk fled to when California got too hostile — they ran the table.

Musk dumped $224 million into Texas alone. Ken Paxton, his pick for Senate, lost to James Talarico. Gov. Greg Abbott, who rolled out the red carpet for Tesla and SpaceX, lost to Gina Hinojosa. Democrats even took the attorney general’s office.

It was the party’s first statewide win in Texas in more than three decades. And Musk’s money didn’t just fail to stop it. It became the issue.

Turns out voters aren’t so easily bought. And the Democrats won’t be quick to forget.

Rep. Robert Garcia, in line to chair the House Oversight Committee, is already preparing to investigate Musk’s role at DOGE. His colleagues want Musk under oath on DOGE’s cuts and on why Starlink was throttled in the middle of Ukraine’s war. And Sen. Ed Markey is joking about how many subpoenas they’ll need to print.

Texas will be even worse.

Incoming Attorney General Nathan Johnson says he intends to investigate Musk, who he says has shown a clear interest in “pay-to-play.”

Hinojosa once sued Abbott just to get his emails with Musk. Now she’s the governor-elect, and she’s pledged to pause new data center projects in the state. That puts SpaceX’s planned data center in Boca Chica squarely in her crosshairs.

Then there’s the Tesla-SpaceX merger Musk floated last month. Democrats in Congress can fight it. And they’re set to control the Texas appeals court that hears Business Court disputes.

Wall Street is already pricing it in. Tesla and SpaceX shed more than $420 billion in market value last week.

That’s just the opening salvo.

Elon’s Loss Is Our Gain

For two years, Elon Musk had the full weight of the U.S. government behind him.

Now he and his companies are going to be challenged in a way they never have been before.

Make no mistake, Tesla and SpaceX are going to be on the receiving end of more lawsuits than contracts in the years ahead.

That’s bad news for Elon, but it’s great news for his competitors — specifically the companies I’ve outlined in my latest report.

These companies compete directly with SpaceX to provide satellites, launch services, and space components and systems to the government, as well as commercial businesses.

These are companies that have done things the honest way. They’ve never needed a friend in the White House. They trade at a sliver of SpaceX’s valuation. And now, they’ve got the inside track.

You can find out everything you need to know in my latest briefing.

Elon spent $750 million buying influence in Washington.

And for two years, he cashed in.

Now it’s his rivals’ turn.