Elon Musk defends $1 million giveaway after Justice Department warning

Tech billionaire Elon Musk defended the legality of his super PAC’s $1 million daily giveaway to registered voters in swing states, days after the Justice Department sent a letter warning that the lottery-style contest might be unlawful.

During an online town hall event Friday on his social media app X, Musk asserted that the purpose of the contest, which targets registered voters who sign his PAC’s petition, was not to induce people to register to vote. That’s a distinction that legal experts have said is important, because it’s illegal under federal law to pay people to register to vote. 

“To be clear, this is not a petition to vote for or register for anyone. It’s really a petition in support of the Constitution of the United States, and in particular, freedom of speech and the right to bear arms,” he said.

Musk’s America PAC has been giving away $1 million a day since Saturday to a registered voter in one of seven battleground states who has signed an online petition pledging support for the First and Second Amendments. The PAC is also offering $100 to Pennsylvania registered voters who sign the petition. When Musk debuted the giveaways, he was conducting a series of town halls where he repeatedly emphasized the importance of voter registration and his support for former President Donald Trump.

Musk, the CEO of Tesla and SpaceX, is the world’s richest person, according to the Bloomberg Billionaires Index, and he’s been using his wealth and notoriety to back Trump’s bid to return to the White House. Musk has given nearly $75 million to the super PAC while campaigning in person for Trump in Pennsylvania and using his platform on X to do the same.

He said at one point Friday that he was trying to be the “anti-Soros,” a reference to financier George Soros’ support for progressive causes. Taking questions on a variety of subjects, he called for cutting government programs and reducing immigration. And on the topic of crime, he asserted without evidence that “there’s hardly a downtown in America that’s actually safe to walk in.” (Crime is falling across the nation and is near historic lows.)

Musk’s daily drawing for $1 million is open to registered voters in Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin.

Legal experts have told NBC News that Musk’s contest falls in a gray area of election law, and on Wednesday, NBC News confirmed that the Justice Department had sent a letter to Musk’s super PAC warning that the $1 million giveaway may run afoul of federal law. 

Musk did not mention the DOJ letter during Friday’s event. The subject came up when someone named “Dennis” asked whether the giveaway was real.

“It’s popped up a few places where I don’t know if it’s you for real or AI,” the person said. “Is there a truth to that?”

Musk said it was true and that it was a “no-brainer” to sign the petition.

Musk took a harsher tone toward the Justice Department on two other subjects during the online town hall. He attacked the criminal prosecutions of Trump, saying they were for “political reasons,” and he criticized the Justice Department for intervening in a lawsuit in Virginia related to immigration and that state’s voter rolls.

“The DOJ priorities seem — they seem wrong,” he said.