X has filed a lawsuit against a California bill requiring social media companies to post and submit moderation information to the state. The company alleges that the legislation has underlying motives that go against the Constitution’s protection of free speech — a common message echoed by leader Elon Musk over the years.
On Friday, Musk reposted a tweet from the X Global Government Affairs account, formally announcing that the social media company has filed a lawsuit against California AB 587.
The bill, signed into law by California Governor Gavin Newsom last year, mandates that social media platforms post and submit regular terms of service information about how they moderate racism, extremism, disinformation, harassment and foreign political interference to the Attorney General on a semiannual basis.
Worth reading our actual legal filing vs what you may see in the media https://t.co/fsLCUeUINq
— Elon Musk (@elonmusk) September 9, 2023
In the lawsuit, dated September 8, X attorneys argue that, while California has propped up the bill as a “transparency measure” for content moderation, it instead seeks to “pressure companies to eliminate or minimize content that the government has deemed objectionable.”
X’s legal team also alleges that the state is forcing them to take positions on politically charged and controversial terms determined by the state, saying that this violates principles of free speech. Below is an excerpt from section 3 of the lawsuit:
“AB 587 violates the First Amendment of the United States Constitution and Article I, Section 2, of the California Constitution because it compels companies like X Corp. to engage in speech against their will, impermissibly interferes with the constitutionally-protected editorial judgments of companies such as X Corp., has both the purpose and likely effect of pressuring companies such as X Corp. to remove, demonetize, or deprioritize constitutionally-protected speech that the State deems undesirable or harmful, and places an unjustified and undue burden on social media companies such as X Corp.”
According to AB 587, social media companies must also submit detailed information about how many items are flagged on their platform and how often users viewed and shared the content. Below is an excerpt from AB 587’s introduction paragraph:
“This bill would require a social media company, as defined, to post their terms of service for each social media platform, as defined, owned or operated by the company in a specified manner and with additional specified information, subject to certain exceptions.”
This is far from the first time Musk has shared his views on free speech using X.
Before initiating a deal to purchase the company formerly known as Twitter last spring, Musk shared a poll asking if the company “rigorously adheres” to principles of free speech. Last December, Musk shared the “Twitter Files,” which targeted former executives of the social media company, claiming that they intentionally suppressed free speech. These are just a few examples of Musk’s self-proclaimed “free speech absolutism.”
Free speech is essential to a functioning democracy.
Do you believe Twitter rigorously adheres to this principle?
— Elon Musk (@elonmusk) March 25, 2022
You can read the full text of California bill AB 587 here, and you can read X’s 35-page lawsuit against the bill here.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
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Tesla just unlocked sales to 50,000+ government agencies
It marks a significant step in expanding Tesla’s presence in the public sector, where procurement processes have traditionally slowed electric vehicle adoption.
Tesla just unlocked sales to over 50,000 government agencies by entering a new agreement with Sourcewell, a purchasing cooperative.
Tesla entered a new master purchasing agreement with Sourcewell, the largest government purchasing cooperative in the U.S. This will enable streamlined sales of its EVs to more than 50,000 U.S. public entities. Tesla entered Designated Contract 0813525-TES, and the agreement covers Model 3, Model Y, and Cybertruck, and potentially other vehicles the company could release.
It marks a significant step in expanding Tesla’s presence in the public sector, where procurement processes have traditionally slowed electric vehicle adoption.
The deal allows eligible agencies, including cities, school districts, state governments, and higher-education institutions, to purchase Tesla vehicles directly through Sourcewell without conducting their own lengthy competitive bidding or request-for-proposal (RFP) processes.
Pricing is pre-negotiated and capped, providing transparency and predictability. Agencies simply register for a Sourcewell account online or by phone and place orders under the existing contract. This cooperative model aggregates demand across thousands of members, reducing administrative costs and time while ensuring compliance with public procurement rules.
For Tesla, the agreement removes major barriers to government fleet sales. Public-sector procurement cycles often stretch 12 to 18 months due to bidding requirements and committee reviews.
Tesla buyers in the U.S. military can get $1,000 off Cybertruck purchases
By securing the master contract, Tesla gains immediate, simplified access to a massive customer base that previously faced friction in adopting EVs. The company highlighted in its announcement that the partnership will help these 50,000-plus agencies “save thousands of $$$ in operating costs for their vehicle fleet over time” through lower maintenance, energy efficiency, and the elimination of tailpipe emissions.
The initial four-year term runs through November 13, 2029, with options for up to three one-year extensions, offering long-term stability for both parties.
Sourcewell’s role is central to execution. As a cooperative purchasing organization, it negotiates and manages vendor contracts on behalf of its members, then makes them available nationwide. Participating entities contact Tesla’s dedicated fleet team or Sourcewell representatives to complete purchases, bypassing redundant paperwork.
This structure accelerates fleet electrification while maintaining fiscal accountability—agencies receive pre-vetted pricing and terms without reinventing the wheel for each vehicle order.
The partnership positions Tesla to capture a larger share of the public fleet market, where total cost of ownership often favors electric vehicles once procurement hurdles are removed.
For government buyers, it translates to faster deployment of sustainable fleets, reduced long-term expenses, and alignment with environmental mandates. As more agencies transition, the contract could contribute to broader EV infrastructure growth and taxpayer savings across the country.
Elon Musk
How much of SpaceX will Elon Musk own after IPO will surprise you
SpaceX’s IPO filing confirms Musk will maintain his voting power to make key decisions for the company.
Elon Musk will retain dominant voting control of SpaceX after it goes public, according to the company’s IPO prospectus that was filed with the SEC. The filing reveals a dual-class equity structure giving Class B shareholders 10 votes each, concentrating power with Musk and a handful of other insiders, while Class A shares sold to public investors carry one vote.
Musk holds approximately 42% of SpaceX’s equity and controls roughly 79% of its votes through super-voting shares. He will simultaneously serve as CEO, CTO, and chairman of the nine-member board after the listing. Beyond that, the filing includes provisions that may limit shareholders’ influence over board elections and legal actions, forcing disputes into arbitration and restricting where they can be brought.
The case for Musk holding this level of control is grounded in SpaceX’s actual history. The company’s most important bets, from reusable rockets to a global satellite internet constellation, were decisions that ran against conventional aerospace thinking and would likely have faced resistance from a board accountable to investor gains. Fully reusable rockets were considered economically irrational by established industry players for years. Starlink, which now generates over $4 billion in annual operating profit, was widely dismissed as financially unviable when it was proposed. The argument for concentrated founder control seems straightforward, and the decisions that built SpaceX into what it is today required someone willing to ignore consensus and absorb years of losses.
SpaceX files confidentially for IPO that will rewrite the record books
For context, Musk’s position is significantly more dominant than Zuckerberg’s at Meta. The comparison with Tesla is also worth noting. When Tesla did its IPO in 2010, it did not issue dual-class shares. Musk has only recently pushed for enhanced voting protection, proposing at least 25% control at Tesla in 2024 after selling shares to fund his Twitter acquisition left him with around 13%.
SpaceX has clearly learned from that experience and structured the IPO differently by planning to allocate up to 30% of shares to retail investors, roughly three times the typical norm for a large offering. The roadshow is expected to begin the week of June 8, with a Nasdaq listing rumored to be a $1.75 trillion valuation and a $75 billion raise.
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Tesla bolsters App with new safety, insurance, and storage features
The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.
Tesla is bolstering its smartphone App with a series of new features to streamline operations for owners. The new additions include fixes to safety, its in-house insurance offering, and storage management for Dashcam clips.
The Tesla Smartphone App is one of the biggest and best features and advantages owners have. Everything from moving the vehicle with Summon, to getting Navigation sent to the car, to preconditioning the cabin can be done with the Tesla App.
But in classic Tesla fashion, the company is aiming to improve the offerings of the app, and it is doing so with a handful of new features. They were first discovered by Tesla App Updates.
Tesla Insurance – Safety Score 3.0
This is truly part of the Spring 2026 Update, but Tesla has now given more transparency on how FSD has saved people money on their premiums.
Tesla intertwines FSD with in-house Insurance for attractive incentive
Additionally, Tesla is now automatically awarding a Safety Score of 100 for every mile traveled on Full Self-Driving (Supervised).
Update Tracking
Updates traditionally appear on the App or on the Center Touchscreen in the car. There is nothing better than seeing that Green Arrow at the top of the screen, or opening your app and seeing that there is a Software Update available.
Now, there will be no need to manually check the app and initiate the download. Tesla is enabling a new feature that will automatically download updates for you.
Storage Management
Your USB drive can now be remotely formatted, and old Dashcam clips can be deleted straight from the phone. When you record a lot of things using the Dashcam feature, that storage fills up pretty quickly.
Now, manually deleting the Dashcam videos is easier than ever.
Trailer Light Test
This is perhaps the coolest and most crucial addition to the Tesla App, as those who tow and haul will now be able to trigger a diagnostic light sequence from the app while standing behind your trailer to ensure the brake lights work.
Verifying your trailer lights are connected properly and operating normally and as intended is normally a massive hassle.
Now, a new trigger will be available to initiate a diagnostic light sequence directly from your phone.