Texas Governor-elect Gina Hinojosa is striking a more conciliatory tone toward Elon Musk after campaigning against a proposed SpaceX land deal, saying she can work with his companies if they operate "on our terms."
In an interview with CNN on Thursday, just two days after election night, Hinojosa said, "We can have a strong working relationship with Elon Musk and his companies. But it has to be on our terms. It cannot be just running over the people of Texas, and that's what changes now that I will be governor."
The shift comes after a campaign in which Hinojosa positioned herself as a protector of Texas land against corporate interests. In a campaign press release in October, she said: "As Governor, I'll protect our land and our livelihoods – not sell out to the highest bidder – because Texans deserve a leader who puts the people first."
Her public land concerns center on Boca Chica State Park, a coastal reserve spanning 1,000 acres at the southernmost point of Texas, just a short distance from SpaceX's Starbase launch site. A Cameron County Commission agenda notice from 2024 raised a prospect presented by SpaceX: a land swap in which Texas would give 43 acres of Boca Chica to SpaceX in return for 477 acres in the nearby area so the company could expand its launch facilities. In August 2025, the commission approved a separate proposal authorizing the Texas Parks and Wildlife Department to sell SpaceX four noncontiguous tracts totaling about 1.9 acres. Last year, the Texas Parks and Wildlife Commission voted to approve that smaller deal.
Hinojosa's comments suggest she may be rethinking her relationship with Musk as she prepares to govern. According to Fox News, the governor-elect has hinted at a possible shift, reflecting the considerations many Democrats critical of business titans are making as they prepare to secure growth and investments for their constituencies.
The softening stance also comes amid broader questions about SpaceX's expansion in Texas. Dan Ives, a strategist at Yorkville, told Anthony Pompliano on The Pomp Podcast that SpaceX shares carry a 20%-25% "political discount" as CEO Elon Musk faces a tougher climate for his Texas AI plans. "I still believe SpaceX acquires Tesla," Ives said, but the midterm results have made SpaceX's expansion harder, particularly in Texas, where much of its data-center buildout is planned. "He will come to the table. I do think the negotiation will happen," Ives said.
SpaceX is seeking tax incentives for a $24 billion Starbase power and computing project, with a hearing scheduled for Dec. 9. Hinojosa has called for a pause in data-center development until stronger protections for residents are in place. In September, Governor Greg Abbott ordered a pause in data-center permits pending audits of power and water.
The governor-elect's conciliatory tone marks a contrast with her campaign rhetoric and with the approach of some Texas Democrats, who have launched a new political campaign targeting Elon Musk and his companies located in the state. George P. Bush recently joined 'America Reports' to outline Musk's extensive corporate presence in Texas, including Tesla and SpaceX, warning that partisan attacks could threaten the business-friendly climate that made Texas an economic powerhouse.
It is not yet known whether Hinojosa's shift will translate into support for the Boca Chica land swap or the Starbase incentive package. Her office did not immediately respond to a request for comment on the specifics of the pending deals.
Our Take
Gina Hinojosa spent her campaign telling Texans she wouldn't "sell out to the highest bidder." Two days after winning, she's already talking about a "strong working relationship" with Elon Musk. What changed? The election is over, and reality has set in.
The truth is, Texas can't afford to drive Musk out. SpaceX's Starbase isn't just a launch site — it's a anchor for jobs, investment, and American leadership in space. The $24 billion power and computing project alone would be a massive boost to the state's economy. Hinojosa knows that. Her campaign rhetoric was red meat for the base. Now she has to govern.
But let's be clear: "on our terms" is code for more government control. The same Democrats who cheered her on are already launching campaigns against Musk. They don't want a working relationship — they want to punish him for owning Twitter and speaking his mind. Hinojosa's olive branch is welcome, but conservatives should watch closely. Will she support the land swap and the tax incentives, or will she slow-walk them while pretending to be a friend?
Elon Musk has done more to advance American industry and space exploration than any bureaucrat ever will. Texas should be rolling out the red carpet, not putting up roadblocks. Hinojosa says she wants a strong working relationship. Republicans should hold her to it — and make sure she doesn't sell out the very people she claims to protect.
