[3] He has had a genre-crossing career, performing with Bruce Springsteen, Uncle Tupelo, Los Super Seven, The Chieftains, James McMurtry,The Clash, Lyle Lovett, John Hiatt, and Guy Clark.

[3] Impressed with each other's performances, the two bands later toured together, including appearances in Ely's hometown of Lubbock, as well as Laredo and Ciudad Juárez in Mexico, across the border from El Paso, Texas.

[8] In the late 1990s, Ely was asked to write songs for the soundtrack of Robert Redford's movie The Horse Whisperer, which led to re-forming The Flatlanders with Gilmore and Hancock.

[3] In February 2007, Ely released Happy Songs From Rattlesnake Gulch on his own label, Rack 'Em Records.

In early 2008, Ely released a new live album featuring Joel Guzman on accordion recorded at the Cactus Cafe in Austin, Texas in late 2006.

[3] In September 2015, Ely released Panhandle Rambler, an album with a reflective west Texas feel.

[11] On February 5, 2019, Ely and John Waite filed a class-action lawsuit against Universal Music Group (UMG) claiming the company is violating their right to terminate grants of copyright after 35 years in accordance with copyright law of the United States by ignoring Notices of Termination.

May 3, 2019, UMG filed a motion to dismiss the case, stating the Notices of Termination were not valid because the songs were not grants of copyright but works for hire.