Gina Hinojosa defeated Republican Gov. Greg Abbott, a three-term incumbent, to become the first Democratic governor since Ann Richards won in 1990.
James Talarico beat Republican Attorney General Ken Paxton to become the first Democrat to win a Texas Senate seat since 1988, and he is on track to lead a Democratic sweep of statewide offices.
SpaceX, Tesla, Chevron, and Caterpillar are among the companies that moved there, drawn by lower taxes and lighter regulation.
The parent company of the new Texas Stock Exchange also raised $155 million last month to try to lure listings away from the New York Stock Exchange and Nasdaq.
That embrace of business became a political liability.
Elon Musk, who has cast Texas as a contrast to California, put roughly $190 million of his $445 million midterm war chest into the state, largely backing Paxton and Abbott.
Talarico used that spending to frame the Senate race as an attempt to buy a seat, and Hinojosa said Musk gave Abbott $5 million in less than a month.
Hinojosa, described by the Texas Tribune as a long shot, also tapped into rising backlash over data center sprawl, meaning the spread of large computing facilities. She campaigned against what she called a Big Tech takeover of Texas land, resources, and schools. Talarico, meanwhile, positioned himself as a booster of the energy industry. Their wins came as Democrats also took control of the Senate nationwide, flipping seats in states including Iowa, Kansas, Maine, Ohio, North Carolina, and South Carolina.