Ross Gerber, a prominent investor in Tesla, has expressed doubts about the effectiveness of an executive order in overriding existing laws concerning the TikTok ban. This comes in response to Donald Trump’s announcement of his intention to issue an executive order to delay the federal ban on TikTok.
Background
The ban stems from a 2024 law addressing national security concerns over TikTok’s Chinese ownership. The law requires app stores and cloud providers to stop hosting TikTok unless it is sold by its parent company, ByteDance. However, Trump’s executive order aims to temporarily halt this law, which was upheld by the Supreme Court.
Gerber’s Statement
Gerber, the CEO of Gerber Kawasaki Wealth and Investment Management, took to social media to express his concerns. He stated:
“I don’t think an executive order can supersede a law when it comes to national security. The Supreme Court has already ruled it constitutional. TIKTOK IS A CHINESE WEAPON.”
Implications
The executive order’s legality and effectiveness remain uncertain, as it may face legal challenges. The law allows a 90-day extension if a buyer is found, but only if significant progress is made toward a non-Chinese deal, and it must be completed within 90 days.
Potential Buyers
Meanwhile, several companies have expressed interest in acquiring TikTok’s U.S. operations. Jeff Bezos-backed Perplexity reportedly made a $50 billion bid to merge with TikTok U.S., although Tesla CEO Elon Musk’s social media app X is seen as a strong contender for the acquisition.
Concerns
Previously, Tesla investor Gary Black raised concerns over Musk’s potential acquisition of TikTok’s U.S. operations, cautioning that it could hurt the EV giant’s stock.
Conclusion
The situation surrounding the TikTok ban remains uncertain, with many questions still unanswered. As the story continues to unfold, one thing is clear: the fate of TikTok’s U.S. operations hangs in the balance.
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