Tesla Inc. CEO Elon Musk refuted claims of donating $45 million monthly to former President Donald Trump's campaign. The billionaire revealed the true purpose of his political action committee (PAC.)

What Happened: In an interview with psychologist and conservative commentator Dr. Jordan Peterson, Musk clarified that the media's reports were inaccurate. He stated that he was not donating $45 million monthly to Trump. Instead, he has established a PAC, "The America PAC."

Musk explained that a PAC is a legal entity that can receive funding and use it to support political campaigns. This differs from direct donations to candidates, which have specific limits. The PAC system allows for more money to flow into the political system than would otherwise be possible.

My conversation with @elonmusk. Live today at 3pm ET.

— Dr Jordan B Peterson (@jordanbpeterson) July 22, 2024

He added that these PACs and Super PACs are used on both the Democratic and Republican sides, creating an open playing field.

"The intent is to promote the principles that made America great in the first place, so I wouldn't say that I'm, say, for example, 'MAGA' of 'Make America Great Again.' I think America is great; I'm more 'MAG'—Make America Greater," Musk said.

Key principles include promoting a meritocracy, where success is based on hard work and skill, rather than nepotism or dynasties, according to Musk. Another principle is promoting freedom and minimizing government intervention.

Why It Matters: The controversy began when reports surfaced last week claiming that Musk was committing $45 million monthly to a pro-Trump Super PAC. This report was met with skepticism and led Musk to respond with a "Fake Gnus" post on social media, indicating his disapproval of the misinformation.

Adding to the complexity, Musk had previously revealed that Trump was a fan of Tesla's Cybertruck, despite his public criticism of the electric vehicle industry. This revelation came during Tesla's annual meeting, where Musk mentioned that Trump frequently called him, though the reasons for these calls were unclear.

The situation took another turn when it was reported that Musk had pledged a significant $180 million donation to Trump's campaign. However, Trump's speech at the Republican National Convention criticized the EV industry, leading to accusations of betrayal.

Further complicating matters, Gov. Gavin Newsom (D-Calif.) took a jab at Musk referencing a 2022 post by Trump that suggested Musk had sought his assistance for subsidized projects. Newsom's post came after Musk relocated the headquarters of two of his companies from California to Texas.

Image Via Flickr

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote