Robert Reich took a victory lap on Wednesday, and he aimed it squarely at Elon Musk. The former U.S. Labor Secretary posted on X criticizing the SpaceX CEO's political spending after Republican Ken Paxton suffered a double-digit defeat in the Texas Senate race. Reich's argument: grassroots organizing can overcome the financial influence of billionaires.

In his post, Reich pointed out that Musk, the richest man in the world, 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.

The defeat has put Musk's business interests 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 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.

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