Tesla Inc. and SpaceX CEO Elon Musk‘s daily $1 million PAC giveaway has come under scrutiny, with billionaire entrepreneur Mark Cuban questioning its legality.
What Happened: On Saturday, Musk announced at a town hall that America PAC, a pro-Donald Trump super PAC founded by the tech mogul, will be giving away $1 million daily to a person in swing states who has signed his petition.
The online petition urges individuals to show their support for the First and Second Amendments, which protect freedom of speech and the right to bear arms.
In response, Cuban took to X, formerly Twitter, and expressed doubts about its legality. “I'm pretty sure that while it may or may not violate voting laws, it may violate gaming laws in Pennsylvania.”
However, Cuban later said he’d defer to the lawyers in this case when users pointed out that laws around sweepstakes are more relevant in this matter.
Following Cuban’s comments, one user criticized the “Shark Tank” star’s stance, accusing him of swindling Yahoo in the ’90s for a “functionally useless company.”
Musk agreed with the user’s comment, highlighting the 1999 deal when Yahoo! acquired Cuban’s Broadcast.com for $5.7 billion.
Later that year, Cuban sold most of the Yahoo! shares acquired during the deal, becoming a billionaire at 41. His choice to sell to Yahoo! proved wise, as the internet giant completely shut down Broadcast.com just three years later following the dot-com bubble burst.
America PAC and Cuban did not immediately respond to Benzinga’s request for comments.
Why It Matters: Cuban and Musk are currently at odds over their political differences and opposing views on Trump, particularly as the 2024 presidential election approaches.
Musk has been openly campaigning for Trump, using social media to promote his views and claims of election fraud, while Cuban has backed Vice President Kamala Harris.
Previously, Cuban cautioned Musk about his strong support for Trump, pointing out that the Tesla CEO may be mistaken about the former president's supposed loyalty. “At the point you need him the most, you will find out what so many before you have learned, his loyalty is only to himself.”
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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