AUSTIN, Texas — A federal judge has ruled that Tesla CEO Elon Musk must face allegations stemming from a lawsuit claiming he operated an unlawful election giveaway during the 2024 presidential campaign. The decision, issued by U.S. District Judge Robert Pitman, allows the case brought by Arizona resident Jacqueline McAferty to proceed in court.
McAferty’s lawsuit asserts that Musk, along with his political action committee, America PAC, deceived voters in seven critical battleground states by falsely presenting an opportunity to win large cash prizes as part of a lottery. According to court documents, participants were asked to provide personal information, including names, addresses, emails, and phone numbers, which they were led to believe was in exchange for a chance to win money.
Musk responded to the allegations by arguing that the monetary benefits offered were not actual prizes but rather payments for individuals selected to act as PAC representatives. However, Judge Pitman cited Musk’s own comments in which he indicated that cash could indeed be “won.” The judge noted that it was reasonable for McAferty to trust those statements as an indication of a legitimate lottery opportunity, regardless of Musk’s intent.
Furthermore, the court dismissed Musk’s defense that participants suffered no harm from sharing their contact information. Pitman pointed out that an expert could testify to the financial value of this data, particularly in strategically important states during an election.
This ruling comes amid Musk reportedly reconsidering plans to launch a new political party, dubbed the “America Party.” Sources close to him indicate that he has decided to hold off on this initiative to maintain alliances with the Republican Party, notably with figures like Vice President JD Vance, who may seek to inherit the MAGA movement.
Initially, Musk had considered the creation of this party earlier in July but is now refocusing on his business ventures. While he may still explore this political path before the upcoming midterms, he has received support from former President Donald Trump, who has previously praised Musk as a “good person.” Vance has also indicated he hopes Musk will reintegrate into Republican circles.
As the political landscape evolves, Tesla may also face emerging challenges. Recent reports suggest that Trump plans to eliminate the $7,500 federal tax credit for electric vehicles while relaxing Corporate Average Fuel Economy standards. These changes could impose further difficulties on Tesla, especially as global sales show signs of decline.
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