Two Years After the "$1 Million Presidential Election Lottery" Controversy, Musk Settles with Voters

Promised payments ahead of 2024 U.S. presidential election

Promoted as a random drawing, but accused of preselecting recipients

Settlement terms undisclosed; court approval still pending

Elon Musk, CEO of Tesla, who held a so-called “presidential election lottery” ahead of the 2024 U.S. presidential election, promising to pay $1 million (about 1.4 billion won) every day to voters in swing states, has reached a settlement in a class-action lawsuit brought by voters.

According to Reuters and Forbes, among other outlets, on October 15 local time, Musk and America PAC, the super political action committee (Super PAC) he founded, said they had reached a settlement with the plaintiffs in two ongoing class-action lawsuits in federal court in Austin, Texas.

Ahead of the 2024 U.S. presidential election, he became embroiled in a lawsuit after holding what was dubbed a “presidential election lottery,” promising to pay swing-state voters $1 million a day (about 1.4 billion won). Reuters-Yonhap News

Both sides filed documents with the court that day notifying it of the settlement. However, the amount and terms of the settlement have not been disclosed. The settlement requires court approval to become final. The controversy dates back to just before the 2024 U.S. presidential election. At the time, Musk, who had publicly endorsed Republican candidate Donald Trump, announced that he would randomly select one person each day from among voters in seven swing states, including Pennsylvania, who signed a petition supporting the First and Second Amendments to the U.S. Constitution, and give that person $1 million.

The promotion was presented as supporting the constitutional provisions that protect freedom of speech and the right to bear arms. However, it was seen as a political effort to encourage conservative voters to register and participate in the election and help Trump win. The method for selecting the recipients became a point of contention. Musk’s side initially advertised that the prize money would be awarded through a random drawing among participants, but later told the court that the recipients had been selected in advance.

During litigation in Pennsylvania in November 2024, America PAC argued that the recipients of the $1 million payments were not simply lottery winners but people selected to serve as spokespersons for the organization after being screened for suitability. Chris Young, America PAC’s director, also testified that the recipients had been screened in advance. Musk’s side said the money was compensation for the organization’s promotional activities, not lottery winnings awarded by chance.

Voters who had signed the petition objected after these explanations came to light. Arizona residents filed a class-action lawsuit, saying they had signed the petition believing they had a chance of being selected at random, and would not have participated had they known the recipients had actually been chosen in advance. The plaintiffs specifically alleged that Musk and America PAC collected participants’ personal information by advertising the promotion as if there were a chance to win.

Musk's side has denied allegations of fraud throughout the legal proceedings. The U.S. Department of Justice had previously warned that the event could violate federal law prohibiting the provision of anything of value in connection with voter registration. Reuters-Yonhap News

Musk’s side has denied allegations of fraud throughout the litigation. Earlier, the U.S. Department of Justice warned that the promotion could violate federal law prohibiting payments in connection with voter registration. Pennsylvania prosecutors filed a civil lawsuit seeking to stop the promotion, but the court did not order it to be halted immediately. As the litigation continued, the possibility was raised that Musk himself might have to testify in court.

In June 2026, a federal court in Texas ordered Musk to give sworn testimony in connection with the class-action lawsuit. If the settlement is finalized with court approval, Musk is expected to avoid the related testimony proceedings. However, the settlement should not be interpreted as an admission of legal liability or fraud by Musk’s side. As the terms have not been disclosed, the amount of compensation and the specific scope of any liability also remain unknown.

Meanwhile, ahead of the Wisconsin Supreme Court election held in April 2025, Musk also sparked controversy over possible election-law violations after saying he would give voters $1 million. In July 2026, the Wisconsin Elections Commission referred the matter to prosecutors, but on August 25, prosecutors decided not to bring criminal charges. Prosecutors cited, among other reasons, that while Musk’s initial remarks could have raised concerns, they were later revised, and it was difficult to conclude that money had actually been paid in exchange for votes.

This content was produced with the assistance of AI translation services.