Elon Musk has been ordered to testify in the fraud lawsuits stemming from his controversial $1 million-a-day election giveaway, marking a new phase in litigation that has dogged the billionaire for two years. A federal judge declined to dismiss the fraud claims, ruling that factual disputes - including whether Musk's representations about the giveaway were misleading - should be decided by a jury.
The case traces back to an unusual promotion Musk and his America PAC launched before the 2024 presidential election. The giveaway offered registered voters in seven swing states the chance to win $1 million a day. Musk publicly said the recipients would be selected "randomly." To participate, people had to submit personal details and sign a petition supporting free speech and gun rights.
The promotion quickly drew legal scrutiny. The Philadelphia District Attorney's Office sued Musk and America PAC, accusing them of election fraud and running an illegal lottery. Under federal law, it is a crime punishable by up to five years in prison to pay or offer to pay for voter registration or voting - and the DA argued the giveaway effectively did just that. A judge ultimately disagreed, but not before Musk's lawyer, Chris Gober, disclosed how the supposed lottery actually worked: the "winners" were not picked by chance at all, Gober told the court, but were vetted in advance and selected for their suitability to represent America PAC. Moreover, the $1 million payments were not prizes but compensation for serving as spokespeople for the PAC.
Two Arizona women, Joy Harvick and Jacqueline McAferty, subsequently filed separate federal class-action lawsuits in Texas, accusing Musk and America PAC of tricking voters into handing over personal information through a competition they had no real chance of winning. A magistrate judge recommended that the fraud claims proceed, finding genuine factual disputes about whether the representations were misleading and whether participants relied on them. The magistrate recommended dismissing breach-of-contract claims, finding the promotion did not amount to an enforceable contract under Texas law. U.S. District Judge Robert Pitman denied summary judgment to Musk and America PAC on the fraud claim in the McAferty case on August 18, and will make the final decision on the magistrate's recommendations.
The order that Musk testify personally raises the stakes considerably. Deposition testimony from the world's most prominent billionaire - under oath, on the record - could produce moments that reverberate well beyond the courtroom. Neither Musk nor America PAC has publicly commented on the testimony order. The cases continue to wind through the federal courts in Texas, with a jury trial a live possibility if the fraud claims survive the remaining pretrial hurdles.