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Inside Elon Musk’s Stellar Year at the Texas Capitol

3 10
wednesday

by Lauren McGaughy, The Texas Newsroom

ProPublica is a nonprofit newsroom that investigates abuses of power. Sign up to receive our biggest stories as soon as they’re published.

This article is co-published with The Texas Newsroom and The Texas Tribune as part of an initiative to report on how power is wielded in Texas.

Elon Musk was pleading.

It was April 2013, and Musk stood at a podium in a small committee room in the basement of the Texas Capitol. The Tesla CEO asked the legislators gathered before him to change state law, allowing him to bypass the state’s powerful car dealership lobby and sell his electric vehicles directly to the public.

He painted a bleak picture of what could happen if they didn’t give him his way.

“We would, I’m afraid, we would fail,” Musk told the assembled representatives. “So for us, it’s a matter of life or death.”

Clad in a dark suit instead of his now ubiquitous black T-shirt and baseball hat, the younger Musk was unable to persuade lawmakers in Austin. That year, the bill he wanted to pass died.

More than a decade later, however, Musk’s fortunes inside the Texas Capitol have changed — dramatically.

Musk is now not only one of the richest people in the world, who, until recently, was a key member of President Donald Trump’s second administration, but he’s also become one of the most powerful business and political figures in the state.

During this year’s legislative session, Musk’s lobbyists and representatives publicly advocated for almost a dozen bills that would benefit his companies. The Texas Newsroom identified these priorities by searching legislative records for committee testimony and other evidence of his public stances.

Musk wanted legislators to pass new laws that would make it faster and easier for homeowners to install backup power generators, like the kind Tesla makes, on their properties. He wanted them to create new crimes so people who fly drones or interfere with operations at his rocket company SpaceX can be arrested. And he wanted to change who controlled the highway and public beach near SpaceX’s South Texas site so he can launch his rockets according to his timeline.

Musk got them all.

In a Capitol where the vast majority of bills fail to pass, all but three of Musk’s public priorities will become law. The two bills his lobbyists openly opposed are dead, including a measure that would have regulated autonomous vehicles.

Musk made gains even on bills he didn’t publicly endorse. Texas lawmakers followed the tech giant’s lead by rewriting the state’s corporate laws and creating a new office modeled after the Department of Government Efficiency, the controversial effort he led in the Trump administration to cut federal spending.

By all accounts, Musk’s influence was great enough that he did not have to formally address lawmakers in person this session to make the case for any of his priorities.

Critics said these new laws will hand Musk’s companies more cash, more power and more protection from scrutiny as his business footprint continues to expand across Texas.

“The real harm is the influence of a private company on the decisions made by government,” Cyrus Reed, the conservation director for the Sierra Club’s Lone Star Chapter, told The Texas Newsroom. The Sierra Club is part of a group suing the state over SpaceX’s activities in South Texas.

Musk and his representatives did not respond to requests for an interview. He recently ended his run with DOGE, and his relationship with Trump has increasingly frayed.

Contrary to his slash-and-burn tactics in Washington, D.C., where he bulldozed his way onto the scene after Trump’s reelection, Musk has played the long game to amass power in Texas. He still hasn’t succeeded in changing Texas law to allow for Tesla direct sales, but that hasn’t stopped him from steadily investing his personal and professional capital in the state over more than a decade. Most of his businesses, including the tunneling firm The Boring Company, social media giant X and Tesla, are now headquartered here. While it’s still based in California, SpaceX operates production, testing and launch sites across Texas.

Musk has also moved his personal home to the state, reportedly securing properties in the Austin area and

© ProPublica