Elon Musk Stirs Political Controversy with $1 Million Daily Incentive for Voters
Billionaire investor Elon Musk is making waves in the political arena by promising $1 million each day to random voters who sign an online petition backing the U.S. Constitution. The aim is to rally 1 million to 2 million supporters for Presidential candidate Donald Trump ahead of the election on November 5. Musk unveiled this initiative on October 18 in Pennsylvania, intending to boost early voting and registration.
Details on Musk’s $1 Million Initiative
Musk, who serves as CEO of electric vehicle company Tesla (TSLA), has created a political action committee named America PAC to support Trump’s campaign efforts. This organization focuses on mobilizing and registering voters in key battleground states.
During a Saturday event, Musk handed a $1 million check directly to a participant named John Dreher, surprising him as he was unaware of the offer. The petition in question advocates for the First and Second Amendments, championing free speech and the right to bear arms in the U.S. Attendees were required to sign this petition, which allowed America PAC to collect contact information from potential Trump voters.
Making a pointed remark during the event, Musk stated that nobody is targeting or threatening Kamala Harris, the Democratic candidate. He stressed that the two assassination attempts against Trump demonstrate that he has the potential to effect real change, a sentiment Musk implied would not be true under Harris’ presidency.
Legal Concerns Surround Musk’s Offer
However, the legality of Musk’s daily $1 million offering has drawn criticism from several experts, who argue it resembles bribery. Promising cash for voter registration and participation might trigger a federal investigation, potentially resulting in sentences of up to five years in prison. Legal analysts suggest that Musk’s actions are aimed at influencing the election in critical battleground areas.
Pennsylvania Governor Josh Shapiro, a supporter of Harris, has expressed serious concerns regarding Musk’s efforts to accelerate Trump’s campaign. He has called for law enforcement to investigate Musk’s financial promises, particularly worried about the influx of undisclosed funds into Pennsylvania and their implications for voters there.
This year, Musk has openly aligned himself with the Republican party and has become a notable advocate for Trump against Harris. Through America PAC, he has already invested $75 million, positioning himself as one of Trump’s strongest backers. In response, Trump has suggested appointing Musk as head of a government efficiency commission if he is elected.
Musk’s actions frequently affect Tesla’s stock performance. As Q3 FY24 results are expected to be released on October 23, investors are keen to see how this plays out in the market.
In addition, shares of Trump’s media company, Truth Social, also known as Trump Media & Technology Group (DJT), have surged significantly this year, gaining 69% year-to-date as the election approaches.
Should Investors Buy or Hold Tesla Stock?
Unfortunately for investors, analysts remain cautious about TSLA stock due to decreasing demand for electric vehicles, declining deliveries, price competition, and an underwhelming robotaxi rollout. As of now, TSLA shares have dropped 11.2% year-to-date.
According to TipRanks, TSLA stock holds a Hold consensus rating, reflecting mixed perspectives with 11 Buys, 16 Holds, and eight Sell ratings. The average price target for Tesla shares stands at $207.83, suggesting a potential downside of 5.8% from current prices.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
