Musk’s $1M daily giveaway sparks DOJ investigation

Elon Musk’s America PAC is reportedly facing scrutiny from the US Justice Department over his $1 million daily giveaways to registered voters. This scheme has raised questions of legality ahead of the 2024 election.

These questions come as Republican candidate Donald Trump already has 60% odds of winning the US presidential election against Kamala Harris. It also coincides with Musk emerging as one of the biggest Trump supporters, vocally and socially.

Justice Department questions legality

As per reports, the Justice Department warned Musk that these giveaways may violate “federal law”, which prohibits paying people to register to vote.

The scheme suggests that winners will be chosen randomly on the condition that they are registered voters who have signed a petition supporting free speech. These conditions turn out to be violations that legal experts argue could make Musk’s plan illegal.

The world’s richest man has pulled out all the stops in recent weeks to back Donald Trump. He even contributed $75 million to a pro-Trump PAC and made appearances at campaign rallies.

Elon Musk had promised some big changes if he joined a potential second Trump administration. Discussions have focused on Musk leading a “Department of Government Efficiency,” named after DOGE, Musk’s favorite meme coin.

Dogecoin (DOGE) has not seen much gain despite the recent push. DOGE price is up by 26% in the last 30 days, while it has jumped by just 28% over the last 60 days. Dogecoin is trading at an average price of $0.137 as of press time.

Musk’s cost-cutting vision

Former President Trump has floated the idea of Musk as Secretary of Cost-Cutting. The billionaire has also been vocal about reducing wasteful spending using AI and recommends a massive rollback of regulations. He has promised severance packages for laid-off workers, referencing tactics used in his businesses.

Most importantly, Musk’s track record in delivering such promises remains mixed. His cost-cutting efforts in companies like Tesla and SpaceX have been controversial. There have also been questions about whether he can achieve similar goals in government.

It is expected that the Tesla CEO’s proposals may face some political hurdles. Meanwhile, with no formal government role yet confirmed, his promises remain part of his broader campaign support for Trump.

Tesla recently announced its third-quarter earnings which unexpectedly topped analysts’ estimates. Tesla’s share price saw a major uptick as it jumped by about 12% in the pre-market trading session. Its earnings per share came out to be 72 cents, adjusted against 58 cents expected. While revenue was $25.18 billion, falling short of the expected $25.37 billion.