EU warns Elon Musk of financial risks under new regulations

The European Union has issued warnings to Elon Musk’s companies, including his social media platform X, over potential financial penalties related to content moderation and transparency issues under the Digital Services Act (DSA). 

The EU's concerns could lead to significant fines, possibly up to 6% of global annual revenue, if X fails to comply with DSA regulations. These violations include not adequately managing harmful content or ensuring transparency on the platform. 

Although X avoided penalties under the Digital Markets Act (DMA) last month due to its smaller market impact, European regulators continue to monitor the platform closely. 

This scrutiny highlights the growing risks for Musk's ventures, which could extend to other businesses like SpaceX and Neuralink, as the EU intensifies its regulatory focus.

Meanwhile, Musk’s company Tesla recently redistributed Bitcoin assets to multiple wallets for the first time in two years, a move seen as significant financial activity. 

This development coincides with Musk’s continued support for Donald Trump’s presidential campaign, where he reportedly donated $75 million. 

These combined factors emphasize the regulatory and financial challenges Musk’s businesses face as the EU increases oversight and Musk’s public involvement in political activities continues to attract attention.