Elon Musk’s X Settles Trump Lawsuit for $10 Million

Elon Musk’s social media platform X (formerly known as Twitter) has agreed to pay approximately $10 million to settle a legal dispute with President Donald Trump. This agreement resolves a lawsuit filed by Trump in 2021, following the suspension of his Twitter account after the January 6 Capitol riot.

The Lawsuit Background

The legal battle began in July 2021 when Trump sued Twitter and its then-CEO Jack Dorsey.

• Trump alleged unlawful censorship after his account was suspended due to concerns that his posts were inciting violence.
• The suspension followed the events surrounding the Capitol riot, which led to widespread calls for action against the president’s social media activity.
• Trump’s legal team pursued the case even after Musk acquired Twitter in October 2022 and reinstated the former president’s account.

The Settlement Agreement

In a recent development, Musk’s X platform has agreed to pay $10 million to settle the lawsuit.

• The payment aims to put an end to the ongoing legal dispute, which had been a point of contention between Trump and the tech giant.
• The settlement represents Musk’s efforts to resolve the issue, despite Trump’s account being reinstated.

Trump’s Legal Wins in Big Tech Disputes

This settlement follows a similar legal victory for Trump.

• Meta Platforms, the parent company of Facebook and Instagram, also reached a settlement with Trump, agreeing to pay about $25 million to resolve a similar lawsuit regarding his account suspension after the Capitol attack.
• Additionally, Trump’s legal team is in the process of seeking a settlement with Google concerning the suspension of his YouTube account.

How to Invest in X

X, being a privately held company after Musk’s acquisition, is not available for public investment.

• Investors looking to bet on Musk’s ventures may consider Tesla (TSLA), the only publicly traded company of Musk’s.
• Tesla currently holds a Hold consensus rating from analysts, with a price target of $340.50, implying a potential 1.19% upside from current levels.

Important Highlights

• Settlement Details: X has agreed to pay $10 million to settle Trump’s 2021 lawsuit, which stems from the suspension of his Twitter account.
• Similar Legal Settlements: Trump has also reached a settlement with Meta Platforms, which paid $25 million to resolve a similar dispute.
• Ongoing Legal Action: Trump’s legal team is negotiating a settlement with Google regarding the suspension of his YouTube account.
• Investment in X: X is privately held and not available for public investment, but investors can consider Tesla as a way to invest in Musk’s ventures.
• Tesla Outlook: Analysts have a Hold rating on Tesla, with a price target of $340.50, suggesting a modest upside potential.