Texas Gov.-elect Gina Hinojosa is already softening her rhetoric toward billionaire Elon Musk, signaling a willingness to work with his companies after spending her campaign attacking a proposed SpaceX land deal.
The Democrat, who defeated Republican Gov. Greg Abbott in last week’s midterm elections, is now acknowledging that the relationship between Texas and one of its biggest business investors may require cooperation rather than confrontation.
During an interview with CNN on Thursday, Hinojosa suggested that her administration could maintain a productive partnership with Musk despite their disagreements.
“We can have a strong working relationship with Elon Musk and his companies,” Hinojosa said.
But the incoming governor insisted that any future arrangement would come with conditions.
“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 remarks represent a noticeably different approach from the harsh criticism Hinojosa directed at Musk and Abbott during her campaign.
In October, she accused the outgoing Republican administration of putting wealthy corporate interests ahead of ordinary Texans.
“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,” Hinojosa declared in a campaign statement.
The controversy centers on Boca Chica State Park, a coastal preserve near SpaceX’s Starbase rocket launch facility in southern Texas.
SpaceX has pursued agreements involving state-owned property near its operations, prompting opposition from residents and environmental advocates concerned about public access and conservation.
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A proposal discussed in 2024 involved exchanging 43 acres of parkland for approximately 477 acres of nearby property.
In August 2025, the Texas Parks and Wildlife Commission approved a separate proposal involving four parcels totaling approximately 1.9 acres.
The commission authorized state officials to proceed with the smaller transaction, although the broader debate over SpaceX’s expansion has continued.
Gina Hinojosa made the issue a prominent part of her campaign against Abbott, accusing the Republican governor of favoring Musk at the expense of Texans.
“After 12 years of selling out Texas to his corporate donors and making working people foot the bill, Greg Abbott is handing over our land to the world’s only trillionaire. Let me be clear: Texas is not for sale,” she wrote.
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She also framed the dispute as a larger battle over corporate influence in state government.
“This is the One Fight that unites us all: Are we going to be a Texas by and for the people, or is this the billionaires’ world and the rest of us just live here?”
But after winning the governor’s mansion, Hinojosa stopped short of ruling out future agreements with SpaceX.
Instead, she requested that state officials delay action on the proposed land transaction until her administration takes office.
“This morning I was pleased to talk to the executive director of the Texas Parks and Wildlife to confirm that this issue was not on today’s agenda and to request that no action be taken out of respect for this transition,” she said Thursday.
Musk, meanwhile, has pushed back against the prospect of a more restrictive business climate in Texas.
In a post on X, the Tesla and SpaceX chief defended the state’s longstanding reputation for welcoming major private investment.
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“SpaceX and Tesla have prospered in Texas, because we were not constantly operating under an oppressive and extractive state government,” Musk wrote.
“As California became increasingly difficult, due to extreme taxes and overregulation, we moved our major domestic expansions and HQ to Texas,” he added.
Texas has become a major center for Musk’s business empire, with Tesla operating a massive manufacturing facility in Austin and SpaceX maintaining its Starbase operations near Boca Chica.
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Those investments have brought jobs and industrial activity to the state, placing Hinojosa in the position of balancing her campaign promises against the economic interests of major employers.
Her transition team did not respond to Fox News Digital’s questions about whether her position on the proposed land sale had changed.
Hinojosa has not announced that she will approve the deal, and her request to delay action remains in place.
Nevertheless, the governor-elect’s willingness to discuss cooperation with Musk marks a shift from her campaign’s confrontational messaging.
Hinojosa is scheduled to take office Jan. 19, 2027, when her administration will inherit the ongoing dispute over SpaceX’s expansion and the future of Texas’ relationship with one of its most prominent investors.
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