U.S. District Judge Donovan Frank denied xAI’s request for a preliminary injunction, an order that would have suspended the law till the end of the lawsuit. Judge Donovan considered what he called the “balance of harms,” and found that “public interest tips steeply in favor of the State,” according to the memorandum quoted by CBS Minnesota. The judge described a “civil statute aimed at protecting the public from the undisputed harm stemming from AI-nudification technology,” and said the statute was passed “democratically and nearly unanimously.”

Minnesota to levy fines on every offense

He was candid that the underlying First Amendment questions were, however, still complex, because of the context of a new technology, believing the case would be settled as it moves forward. For now, though, the ban remains upheld. Minnesota’s legislature approved the bill this spring, and the governor appended his signature. However, xAI did not sue until July 27, which was about three months later and days before the August 1 start date.

The AI company sought a temporary restraining order on July 29, which Judge Frank turned down on July 31. This gap became even more evidence against xAI. “If xAI genuinely feared irreparable harm, the Court does not doubt it would have acted more quickly to file this action and move for injunctive relief,” Frank wrote. In other words, a company racing to avoid catastrophe does not wait until the eve of enforcement to ask a court for help. The statute, known as HF 1606, is the first of its kind in the entire country.

It bars a provider from letting users generate realistic images that add intimate body parts absent from an original photo of an identifiable person, and also bars them from producing such an image on any user’s behalf. Each violation carries a civil penalty of up to $500,000, and people depicted in these images can bring their individual claims for damages. The federal Take It Down Act and a 2025 Texas approach towards deepfakes all depend on whether the maker knew the image was nonconsensual. Minnesota has completely removed that requirement, so a provider can be liable even without knowledge that a nude image was created.

This provision within the statute is the exact area xAI is against. The bill cleared the House 132-1 and the Senate 65-0 after reports of a man who used social-media photos to fabricate sexual images of more than 80 women he knew. Attorney General Keith Ellison, who defended the signed statute, stated that the ruling was a win for residents of Minnesota. “I am extremely proud to be defending this law, and along with it, the dignity of the people of Minnesota,” he said, adding that the statute continues to stop products like xAI’s Grok Imagine from generating sexualized images.

According to a report referenced in the ruling, Grok produced about 3 million sexualized images in the 11 days after a new image-editing feature launched, including about 23,000 that appeared to depict children. Cryptopolitan had previously reported that xAI, defending its record, said it suspended 52,222 accounts this year and filed 73,604 reports with the National Center for Missing and Exploited Children. xAI’s attorneys have now filed notice that they will ask the 8th Circuit Court of Appeals to review the injunction denial. In earlier arguments, the company proposed the suspension of features for Minnesota users instead of risking any fines.

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The launch took place at an invite-only event in Austin, where Tesla gave a select group of influencers and loyal customers the first rides in its Cybercabs. Axios described the vehicle as a gold-painted model featuring gull-wing doors, with no conventional mirrors, steering wheel or pedals. Tesla is positioning the Cybercab’s interior as more than just a space for transportation, with entertainment built into the passenger experience. A promotional video released by the company showcased theater, music and gaming apps accessible via a 22-inch touchscreen.

Tesla promises to equip future models with enough connectivity

Tesla also claimed future models would be equipped with V5 Starlink hardware to ensure full connectivity. Robotaxi customers will be able to book Cybercab rides via Tesla’s dedicated ride-hailing app, with ordering processes designed very similarly to order ride-hailing services like Uber, Lyft or Waymo. Texas has registered just 45 Cybercabs so far, a tiny fraction of the 420 robotaxis Tesla has in operation across the state.

Most of those vehicles are conventional Model Y cars equipped with the company’s Full Self-Driving software, meaning the majority of customers requesting a ride will not yet be picked up in the new steering-wheel-free Cybercab. The company has built production capacity for up to 125,000 Cybercabs annually, while Musk has said Tesla ultimately plans to produce the vehicles at a scale of millions. The gap between the CEO’s vision and reality remains very wide, however.

Reaching the targeted Cybercab production levels could present Tesla with regulatory challenges at the federal level. Tesla appears willing to certify the Cybercab as compliant with existing regulations instead of attempting to seek an exemption from safety requirements that the unconventional vehicle design may not meet. The approach could help Tesla avoid any production limits associated with the exemption process, which would give the company much greater flexibility to increase Cybercab manufacturing significantly.

The National Highway Traffic Safety Administration, which does not pre-approve vehicles or new technology, has said Tesla has filed a no-exemption request and that the agency “is in touch with the company and is monitoring the situation.” Tesla is also seeking outside investment to expand its robotaxi network. On Thursday, the company opened an application form inviting individuals and entrepreneurs to purchase Cybercab fleets for commercial use or develop the hubs and infrastructure needed to service them, under the pitch, “Help us build our Robotaxi network.” The vehicles, however, are not yet available for purchase by the general public.

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It is left to Tesla to keep its promise and deliver the Roadster. As of this Cryptopolitan report, Tesla (NASDAQ: TSLA) traded at $350.34. It increased by 3% from Thursday’s close of $339.96. Now its shares are trading between $342.01 and $351.10; however, it is still way below its high of $498.83 and is closer to its low of $297.38 in 2026 for the year. Tesla currently has a market capitalization of $1.10 trillion.

Roadster rumor fuel Tesla stock surge

All of this began with a report by Grace Kay from The Information. In the report, she claims that Tesla is about to launch a redesigned next-gen Roadster. One of the big takeaways from the report was that the new reveal could be unveiled before August ends, and the redesign would include flying capabilities, which will be tested at Tesla’s site in McGregor, Texas.

Musk has previously teased the release of a flying car. Days before the report broke, Musk tweeted, “flying cars are coming.” Also, Tesla, for a couple of years, has teased a SpaceX cold gas thruster package that will let the car hover or briefly leave the ground. An old video clip of Musk teasing the Roadster went viral on X. The upcoming launch was tagged “unforgettable” by the poster. Musk simply replied, “Yes.”

Skeptics would be well within their rights not to be excited. And this is not without reason. The Roadster is still in the design development phase, and Tesla has floated a lot of release dates in the past years, without meeting any. In July 2025, Lars Moravy, VP of vehicle engineering at Tesla, stated the Roadster was “definitely in development,” but no car has come out to date. Tesla’s dwindling stock price cannot be ignored either. It has dropped by 26% as competition with BYD and Xiaomi stiffens.

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In its recent coverage of SpaceX, Bloomberg referred to the company as one that overpromises and underdelivers, sparking the ire of both Eric Trump and Elon Musk. Eric Trump responded to the post via a quote with statistics that show that SpaceX was responsible for roughly 80 to 85% of all mass launched to orbit in 2025, compared to about 8 to 10% for China. He also said that the company completed “165 successful Falcon flights with zero failures.” Musk’s reply was shorter, simply writing, “Bloomberg is garbage,” to his followers. The post drew more than 1,600 likes within hours.

Eric Trump backs SpaceX’s activities with statistics

The “overpromising” charge that Eric Trump was trying to disprove relates to targets Musk has set but not yet met. Musk has a record of disputes over his public statements, including an announced plan to take Tesla (NASDAQ: TSLA) private that never happened. Cryptopolitan reported SpaceX’s first earnings. SpaceX reported $7.81 billion in second-quarter revenue, up 92% from a year earlier, but also a $541 million net loss and $18.37 billion in quarterly capital spending.

Company executives said the 13th Starship test still needs regulatory approval before it can happen. They also said a Starlink upgrade will not be fully available to customers until about 1,000 new satellites are in orbit. SpaceX’s Starship program has cost over $15 billion so far, including $3 billion in 2025 and nearly $900 million in early 2026. The company expects Starship to start delivering payloads to orbit in the second half of 2026, but that milestone remains ahead of it.

Eric Trump told Fox News host Sean Hannity back in 2017 that critics of his father were “not even people.” He also called the news media “out of control.” That same year, he told a radio show that dwelling on negative coverage could push someone to “end up killing yourself out of depression.” During the 2024 campaign, he defended claims about FEMA that officials had labeled disinformation, telling Scripps News, “It’s not misinformation. FEMA has run out of money.”

Musk has had many similar clashes that have escalated as his platform has grown. The Guardian columnist Jane Martinson wrote about Musk’s interview with Zanny Minton Beddoes, the editor-in-chief of The Economist, whom he called a “traitor to the West” after the interview ended. He also said the mainstream press is a “reality distortion nightmare mirror.”

A separate spat with President Donald Trump in June 2025 erased $34 billion from Musk’s net worth in a single day. During that dispute, Musk threatened to decommission SpaceX’s Dragon spacecraft but ultimately reversed his decision five hours later.

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Elon Musk is promising a level of scrutiny no major social platform has offered in order to provide answers for individuals who have questioned how X ranks posts and moderates content. Elon Musk, in a post on X, said he will release the full codebase of the platform “with no exceptions” after the review for security vulnerabilities is completed. He added that “third party reviewers” would be invited “to confirm that the open source code is what is running on X’s live servers.

Elon Musk to open source X codebase after security checks

Before this announcement, in May 2026, X’s “For You” recommendation algorithm, which exposed the Grok-based ranking system along with the Thunder and Phoenix Retrieval components that pull candidate posts, was released on GitHub. It attracted thousands of developers, reaching 20,000 stars within a day, but it included only a small “mini” AI model, not the full production version, and withheld training data and advertising strategy.

Musk has previously described X’s algorithm as a “black box” that needs “massive improvements.” Musk has so far not provided a specific date for when the security review would finish or when the code would be released. The company reportedly plans to publish algorithm changes on GitHub every four weeks. Earlier, in a February 9 post, he announced that X would run “rigorous security tests” of X Chat and then open source all of that code. This also does not have a fixed date for completion.

xAI, the AI company whose Grok model underpins X’s newer ranking work, has also run its own open-source track. Cryptopolitan reported in August 2025 that xAI released the Grok 2.5 model on Hugging Face, a 500GB download that needs at least eight GPUs to run. Releasing the full codebase puts every vulnerability, design choice, and shortcut out in the open for anyone to see, and this comes with significant risk.

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According to reports, Elon Musk will earn the compensation if SpaceX reaches a $7.5 trillion valuation, puts a permanent human population on Mars, and builds space-based data centers with compute power so large it sounds like something only this company would put in paperwork. The plan was shown inside SpaceX’s private registration filing with the US Securities and Exchange Commission in recent weeks.

SpaceX board approves new pay package for Elon Musk

SpaceX is still privately held, but it is preparing for a possible IPO around June 28, which is coincidentally Elon’s birthday, at a possible value of about $1.75 trillion. That alone is expected to push the company into the same weight class as the biggest public names, while Tesla (TSLA) shareholders also watch the same CEO chase another huge award outside the electric vehicle business. The largest part gives Elon up to 200 million restricted shares.

Aside from hitting the valuation, SpaceX claims that the human settlement population on Mars should be around 1 million. The filing turns a Mars dream into a corporate pay target. No vague hype. No soft language. It puts a population number beside a valuation number and links both to Elon’s stock award. A second part of the package gives Elon as many as 60.4 million restricted shares from an award dated March 23.

That part depends on separate company value targets and SpaceX running data centers in outer space that can provide at least 100 terawatts of computing power. That power figure is massive. 100 terawatts equals 100,000 gigawatts, or about 100,000 nuclear reactors of one gigawatt each running at the same time. Both stock awards use Class B restricted shares. Each Class B share carries 10 votes, while each Class A share carries 1 vote. That gives the package a control angle, not just a money angle. The shares vest in parts as SpaceX grows in value.

Elon gets none of those shares if SpaceX fails to hit the board’s targets. The plan does not have a calendar deadline, except that he must keep working at the company. Since 2019, SpaceX has paid him a yearly salary of $54,080. SpaceX cannot place a clean dollar value on the package yet because its shares do not trade publicly. Elon already held 68.8 million Class B stock options as of December 31. Those earlier options have a strike price of about $42 and expire in 2031, so any gain above that price belongs to him if he exercises them before they lapse.

However, it is expected that the SpaceX award may create friction between SpaceX investors and Tesla shareholders. Elon runs both companies, and corporate governance experts have warned that investors may question how much attention each business gets when both have giant targets attached to him. SpaceX is also ending a separate fight in California. The development comes as the California Coastal Commission apologized to Elon’s rocket company and settled a lawsuit filed after SpaceX accused the agency of political bias against the company and its chief executive.

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According to reports, Washington is not joining what it calls a politically-motivated case targeting an American tech business, according to a two-page letter sent Friday by the Justice Department’s Office of International Affairs. The letter reportedly said, “This investigation seeks to use the criminal legal system in France to regulate a public square for the free expression of ideas and opinions in a manner contrary to the First Amendment of the United States Constitution.”

DOJ rejects France’s requests on political grounds

The DOJ also said France’s requests “constitute an effort to entangle the United States in a politically charged criminal proceeding aimed at wrongfully regulating through prosecution the business activities of a social media platform.” French authorities had already made three separate requests for US help in 2025. Those included attempts to serve legal summons to X officials.

Investigators had already raided the company’s Paris office in February, pushing tensions higher between European regulators and the platform. X described that raid as “an abusive act of law enforcement theater.” French officials have since summoned Elon, former CEO Linda Yaccarino, and other employees for what they called voluntary interviews. Elon was scheduled to appear on Monday.

Under French law, skipping such a summons can lead to arrest warrants. That puts real legal risk on the table. Authorities are looking into claims tied to deepfake content and alleged bias in X’s algorithm, arguing the system favors Elon’s views. The case started in January 2025 after complaints from a lawmaker and another official who said the platform’s content selection could count as foreign interference in France.

Prosecutors are also reviewing serious charges like the distribution of child pornography. An xAI official allegedly said, “We are grateful to the Justice Department for rejecting this effort by a prosecutor in Paris to compel our CEO and several employees to sit for interviews.” The same official added, “We hope the Parisian authorities will now come to their senses, recognize that there is no wrongdoing here, and terminate their baseless investigation.” X operates under Elon’s AI firm xAI, which is now owned by SpaceX.

Meanwhile, as the legal fight plays out, France is also annoying Trump on a totally different front. President Emmanuel Macron and UK Prime Minister Keir Starmer are working on a joint plan focused on the Strait of Hormuz. They are pushing a European-led mission to reopen the shipping route after the conflict ends, without relying on US leadership. The proposal introduces a naval force made up of Britain, France, and other non-belligerent countries. Deployment would only happen after the fighting stops.

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According to the report, the listing could see the company’s valuation jump close to $1.75 trillion. The idea was shared with banks by SpaceX CFO Bret Johnsen, who has reportedly told Wall Street firms how the deal could be structured. The plan is still being worked on and can change at any time. The goal is clear: Elon Musk wants strong demand from everyday investors who already follow his companies.

Elon Musk says retail investors could get 30% of SpaceX after IPO

Demand from retail investors is expected to be strong, which includes family offices that have backed SpaceX for years and smaller investors who follow Elon closely. Many of them already tracked the company while it was private, and Elon expects them to hold their shares longer and avoid quick selling right after the IPO. Meanwhile, Elon Musk is apparently personally choosing the banks involved with SpaceX’s merger and giving each one a specific job.

Bank of America will handle retail investors inside the United States, Morgan Stanley will bring in smaller investors using its E*Trade platform, UBS will focus on wealthy investors outside the US, and Citi is handling global distribution across both retail and big institutions. Other banks are tied to regions, like Mizuho working in Japan, Barclays covering the United Kingdom, Deutsche Bank responsible for Germany, and the Royal Bank of Canada, of course, handling Canada.

Cryptopolitan had reported earlier that the retail share could go above 20%, and internal talks now point closer to 30%. Meanwhile, Elon Musk is still busy making changes inside X, having removed its chief marketing officer, Angela Zepeda, who had been in the role since September 2024. Her exit came after Musk announced a merger between xAI and SpaceX. In addition, the company has also cut more than 20 employees in recent weeks.

The job cuts affected those who were in nontechnical roles across marketing and other teams. These jobs were seen as overlapping with roles inside the combined structure. Staff who remain at X are now focused on revenue. Jon Shulkin is leading that effort. Shulkin is the chief revenue officer at xAI and also a partner at Valor Equity Partners. His role covers both the social platform and the AI business.

Revenue numbers show the current position. US ad revenue at X is expected to rise 1.5% to $1.27 billion. Global ad sales are projected to increase 2.2% to $2.19 billion. Back in 2021, before Elon took the company private, Twitter reported $4.51 billion in advertising revenue. These changes are happening while SpaceX moves closer to its public debut.

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Lawyers for the plaintiffs said the damages could reach $2.6 billion, a huge number in a case tied to one of the most chaotic tech acquisitions in recent years. The lawsuit is called Pampena v. Musk. It was filed in October 2022, after Elon finished buying Twitter for $54.20 per share. After closing the deal, he changed Twitter’s name to X. He later combined it with xAI, his artificial intelligence company, and then with SpaceX, his rocket business.

Elon Musk loses lawsuit over comments during Twitter takeover

Outside the courthouse in San Francisco, lawyer Joseph Cotchett said, “This is a great example of what you cannot do to the average investor — people that have 401ks, kids, pension funds, teachers, firemen, nurses. That’s what this case was all about. This was not about Musk. It was about the whole operation.” The fight centered on what Elon said after he made his bid for Twitter in April 2022.

Soon after offering to buy the company, he started questioning Twitter’s numbers on bots, spam, and fake accounts. In May 2022, Elon posted that the takeover was “temporarily on hold” until Twitter’s chief executive could show that fake and spam accounts were close to the roughly 5% level listed in the company’s SEC filings. That post, along with other public remarks from Elon, hit Twitter shares hard. The stock fell almost 10% in a single trading session.

Jurors spent four days reviewing the evidence. They then unanimously found that Elon’s tweets from May 13 and May 17 were materially false or misleading. Former Twitter shareholders said those posts were not random. The group included small investors and options traders who argued that Elon was trying to pressure Twitter’s board into accepting a lower price than the one he had already agreed to pay.

They said he had a financial reason to do that because Tesla stock had dropped, and that meant he may have needed to sell more Tesla shares than he first expected in order to fund the buyout. The plaintiffs said they sold their Twitter shares for less than $54.20 after reading Elon’s posts and hearing his comments in press interviews. Their lawyers said the damages estimate came from expert work on how much his changing public stance pushed the stock price down during the class period.

Elon’s lawyers at Quinn Emanuel pushed back in an emailed statement. They said, “We view today’s verdict, where the jury found both for and against the plaintiffs and found no fraud scheme, as a bump in the road. And we look forward to vindication on appeal.” The investor verdict landed in the same week that another lawsuit hit one of Elon’s companies.

Three teenagers in Tennessee sued xAI in California, where the company is based. The high school students said xAI’s image tools were used to turn real photos of them into sexually explicit fake images. They reportedly want to proceed under pseudonyms. They are also asking for class-action status so they can represent what the complaint describes as thousands of victims who are minors, or who were minors, when those fake images were made.

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In view of this development, industry influencers can now engage in paid partnerships to promote crypto products and services, provided they follow X’s labeling rules and clearly disclose sponsorships. Influencers are also responsible for ensuring that paid crypto content is blocked or not visible in regions where such promotions are restricted due to local regulations. The update essentially overturns a ban that dates back to at least June 2024. Still, in major markets, the restrictive measure is still in effect in the UK, Australia, and the EU.

X clears crypto and gambling promotions

The news was reported by analyst DeFi Ignas, who mentioned that digital assets are no longer listed under Prohibited Industries for paid promo on X. However, despite the recent exclusion, pharmaceuticals, tobacco, weapons, and diet-related products were added to the ban list. In addition, promotions for sex products and services, alcohol, dating platforms, and recreational and prescription drugs remain restricted.

The platform’s head of product, Nikita Bier, insists the updated ad policies are designed to help creators stay compliant and transparent with their audiences. He noted, “X’s core value is providing an authentic pulse on humanity. While we want to encourage people to build their businesses on X, undisclosed promotions hurt the integrity of the product and lead people to distrust the content they read on X.”

That means paid collaboration posts must show the “Paid Partnership” label. Additionally, influencers must ensure their content complies with applicable laws, including FTC rules. They must also clearly show the product, service, or CTA in the content, without requiring the user to follow extra links. Still, the updated policy sets a clear boundary between Paid Partnerships and routine ads.

X Money to enter external beta phase

The development permits some content to run through X Ads even if it wouldn’t be allowed in a partnership. However, users who violate X’s paid partnership policy may have their posts removed or their accounts suspended. Meanwhile, X Money is heading towards an external beta after completing its internal private beta. Founder Elon Musk revealed, “For X Money, we’ve actually had X Money live in closed beta within the company. We expect in the next month or two to go to a limited external beta, and then to go worldwide to all X users.”

He added that the goal is to make X indispensable for communications, news, or X Money, noting, “you could live your life on the X app.” What X Money is, he added, is a solution for all financial transactions — and, if it works together with XChat and more powerful communication tools, could change the way users engage with the platform, leading to growth to more than one billion daily users.

Overall, X Money supports Musk’s ambition to transform the platform into an all-in-one app for messaging, payments, and day-to-day activities. Although the company has yet to reveal concrete plans to integrate crypto assets into X Money. Earlier, former CEO Yaccarino had stated that X would add investment and trading capabilities, suggesting that digital assets could become part of its financial offerings.

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