A federal judge has ruled that Elon Musk, CEO of Tesla Inc., must face a lawsuit alleging that he operated an illegal election giveaway during the 2024 presidential campaign. The lawsuit claims that Musk’s political action committee, America PAC, misled voters into believing they were entering a legitimate lottery.
Misleading Voters with Fake Lottery Scheme
The plaintiff, Jacqueline McAferty, an Arizona voter, alleges that Musk induced people in seven battleground states to sign a petition supporting the U.S. Constitution with promises of million-dollar prizes. Participants were required to provide personal information, including names, addresses, emails, and phone numbers, but had no real chance of winning.
Musk argued that the payouts were not “prizes” but payments to individuals “selected to earn” money as PAC spokespeople. However, the judge cited Musk’s own statements suggesting that money could be “won,” making it plausible that the plaintiff relied on those statements to believe that she was entering a random lottery.
Data Collection and Election Integrity
The court also rejected Musk’s claim that voters were not harmed by providing contact details. An expert in political data brokerage could testify to the monetary value of voter information, particularly in swing states. This highlights the importance of protecting voter data and ensuring the integrity of elections.
Musk’s Political Plans Shift
The ruling comes as Musk has reportedly shelved plans to launch a new “America Party.” Musk decided to step back from third-party ambitions to avoid alienating Republicans, particularly Vice President JD Vance, a potential successor to the MAGA movement. While Musk had floated forming the party in July, sources say he is now focused on his companies, though he may revisit the idea before the midterms.
Trump’s EV Tax Credit Rollback Threatens Tesla
Tesla may face new challenges as President Donald Trump rolls back the $7,500 federal electric vehicle tax credit and eases Corporate Average Fuel Economy standards. These changes could further pressure the company amid declining global sales. However, Trump also signed an executive order to loosen space industry regulations, which could provide a boost to Musk’s aerospace venture, SpaceX.
Key Takeaways
- Elon Musk must face a lawsuit over an alleged election lottery scheme
- The lawsuit claims that Musk’s political action committee misled voters and collected valuable personal data
- Musk’s political plans have shifted, with a focus on his companies rather than launching a new party
- Tesla may face challenges due to changes in EV tax credits and regulations, but SpaceX may benefit from looser space industry regulations.