On Thursday, a federal judge ordered Tesla Inc. (NASDAQ:TSLA) and Space Exploration Technologies Corp. (NASDAQ:SPCX) CEO Elon Musk to testify under oath in litigation over his $1 million-a-day election giveaway.
Judge Orders Elon Musk Deposition In Election Giveaway Case
A federal magistrate judge in Texas has ordered Musk to sit for sworn testimony in two proposed class-action lawsuits accusing him and his political action committee, America PAC, of misleading voters during the 2024 presidential election, Reuters reported.
In a ruling, U.S. Magistrate Judge Susan Hightower recommended that Musk and his political action committee, America PAC, face a claim in one of the lawsuits.
The claim alleges they misled voters into providing personal identifying information as part of the $1 million giveaway.
However, she recommended dismissing a related breach of contract claim.
Plaintiffs Say $1 Million Winners Were Not Chosen Randomly
Arizona plaintiffs Joy Harvick and Jacqueline McAferty allege Musk and America PAC induced voters in seven battleground states to sign a petition supporting the U.S. Constitution by advertising a daily $1 million giveaway.
According to the lawsuits, participants believed winners would be selected at random, similar to a lottery.
Instead, the plaintiffs claim the recipients were handpicked as potential spokespeople for America PAC, citing statements made by one of Musk’s attorneys.
Judge Questions Use Of Randomly In Promotion
Hightower said it remains unresolved whether Musk acted recklessly when describing the selection process as random.
The judge pointed to testimony from America PAC Director Christopher Young, who said he was “surprised” by Musk’s wording.
“It was not the way that we had — you know, with legal counsel and consultation, discussed the program and how it would run,” Young testified in a February 2026 deposition.
U.S. District Judge Robert Pitman will decide whether to adopt Hightower’s recommendations and will separately rule on a motion seeking dismissal of Harvick’s lawsuit.
Musk became the world’s first trillionaire after SpaceX went public on June 12. He currently has a net worth of $943.8 billion, according to Forbes.
Price Action: Shares of Tesla closed down 0.09% at $375.12 on Thursday, while SpaceX fell 0.87% to close at $153. In the after-hours trading, Tesla shares dipped 0.19% while SpaceX declined by 0.12%, according to Benzinga Pro.
Benzinga Edge Stock Rankings show that SpaceX stock maintains a bearish price trend across all major time frames—short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: IAB Studio on Shutterstock.com
Recent Comments