Five Democratic senators have asked the Department of Justice (DoJ) to investigate whether or not Elon Musk is using his influence in the Trump administration to pressure advertisers into returning to X, his social media platform, according to a report by The Wall Street Journal. The senators — Elizabeth Warren, Cory Booker, Richard Blumenthal, Adam Schiff, and Chris Van Hollen — are worried that Musk may be violating federal ethics laws.
This request comes after a report by The Wall Street Journal said that X was pressuring Interpublic Group (IPG) to increase ad spending. Indeed, an X attorney allegedly implied that there would be consequences if the company didn’t comply. The senators are also worried about Musk’s potential conflict of interest due to his government role as head of the Department of Government Efficiency and his ownership of X. In a letter to Attorney General Pam Bondi, the senators said they are worried that Musk’s actions could harm those who don’t do business with him.
The controversy surrounding X and its advertising practices has been an ongoing thing since Musk loosened content-moderation restrictions after buying the platform in 2022. Some advertisers, including Amazon (AMZN) and Apple (AAPL), have returned to the platform, while others remain cautious. Separately, the senators have also asked the Federal Trade Commission to resist any pressure from Musk or X to block the pending merger between Interpublic Group and Omnicom (OMC).
What Is the Prediction for Tesla Stock?
When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company – Tesla (TSLA). Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 47% rally in its share price over the past year, the average TSLA price target of $346.72 per share implies 31.1% upside potential.
