Elon Musk has poured $225 million into Texas. Now, a newly empowered Democratic leadership could halt several of his projects.

Musk's companies, including SpaceX and Tesla Motors (NASDAQ: TSLA), have expanded smoothly across Texas, aided by favorable treatment from mostly Republican elected officials — tax incentives, infrastructure support, and legislation raising the bar for lawsuits against these businesses.

Multiple Texas Democrats interviewed said this dynamic is about to change. Newly elected Governor Gina Hinojosa defeated incumbent Republican Governor Greg Abbott, and she is suing Abbott to obtain communication records between his office and Musk. Her campaign platform included slowing data center construction and opposing certain land deals involving the world's richest person.

Democratic State Representative Mary González, whose district covers part of El Paso, said: "Musk's projects get approval treatment that others don't. We must ensure everyone follows the same rules."

The plan to sell public park land to SpaceX has drawn particular ire from Democrats and even some Republicans. In September, a federal judge approved the Trump administration's decision to transfer about 700 acres within a federal wildlife refuge to SpaceX, a move environmental groups opposed.

Hinojosa held her first press conference Thursday as governor-elect, saying she has asked to delay state-level consultations on another land deal at Boca Chica State Park until after she formally takes office.

Musk has extensive construction plans in Texas. Austin hosts Tesla's largest U.S. electric vehicle factory, which is also slated to become a mass-production base for humanoid robots. SpaceX's production and launch facilities are spread across southern and central Texas. Musk plans to invest billions of dollars in a Terafab chip factory, a key semiconductor project.

While the current state government supports Musk, many Texans are unhappy with his expansion plans, especially rural residents worried about environmental damage. Grimes County is planning a 100-million-square-foot complex co-developed by SpaceX and Tesla. In June, local residents attended a county commissioners meeting, saying the development would destroy their quiet way of life.

The Texas governor holds influence over project approvals. The Texas Commission on Environmental Quality oversees approvals for large projects like those from Tesla and SpaceX. Once Hinojosa takes office, she will have the power to appoint commission members, providing a check on corporate power.

Musk has been relatively restrained in his comments on the election results, posting on X: "Space data centers do look pretty appealing, though." SpaceX and Tesla did not respond to requests for comment.

Musk's large campaign donations have made him a target for many voters. He donated about $160 million to a Republican super PAC supporting Texas Attorney General Ken Paxton's U.S. Senate bid, but Paxton ultimately lost to James Talarico. The Democratic candidate accused the billionaire of trying to "buy himself a senator."

Newly elected Texas Comptroller Sarah Eckhardt said: "For a long time, big capital has always gotten a green light in Texas." Eckhardt previously held county office in Austin before serving as a state senator, during which she regularly dealt with Musk's projects. She said Musk's companies have indeed brought economic development to Texas and provided many well-paying jobs that don't require a college degree.

But she added that Musk has lacked empathy for local residents as he continues to ramp up development in Texas. In her view, Musk uses capital to pressure small county governments into fast-tracking large projects, while these local governments lack negotiating leverage. Eckhardt said she hopes the state government will intervene more if counties need it.

However, the new Democrats say they want to maintain Texas's growth vitality and friendly business environment — just no longer giving Musk special exceptions. That could even mean Musk's competitors also receive incentive policies. Eckhardt said: "I think a healthy cooperative relationship will form between the two sides." "The playing field will become fair. Amazon and Starlink competing on the same stage — we won't favor either side," she said, referring to SpaceX's satellite internet business.

Musk's move to Texas began in 2020, when he was unhappy with California's regulatory environment and policies. Musk said in an interview at the time about the relocation plan: "If a team wins too long, it tends to get complacent and take things for granted, and then it stops winning championships."

The Texas state government gave him favorable treatment upon arrival: fewer local zoning regulations, lower environmental and labor requirements, and vast tracts of loosely regulated land. Unlike California, Texas levies no corporate income tax and no personal capital gains tax.

Musk's critics say the favors Texas has given him have exceeded reasonable bounds. Texas specifically amended laws and created a new type of business court to accommodate controlling shareholders like Musk. Despite Texas's open records laws, Abbott's office has blocked public records related to Musk's businesses at the request of his companies.

Democratic State Representative Gene Wu, whose district includes part of Houston, said: "People are tired of feeling like second-class citizens — the wealthy can throw money around and get whatever they want." Wu said voters no longer want to see "super-rich individuals continuously receiving subsidies." "If he doesn't want to pay taxes, that's his choice, but we need funding to keep public schools, roads, and hospitals running."