Washington DC - Tech billionaire and former Trump administration official Elon Musk is facing a lawsuit over his decision to offer a $1 million-a-day giveaway during the 2024 presidential election.

Musk was ordered by a federal judge on Wednesday to face a lawsuit over the election giveaway, after it was ruled that allegations presented by the plaintiff party were plausible.

During the 2024 presidential election, Musk tried to boost voter turnout by offering $1 million a day to a "randomly" selected person who'd signed a petition put together by his political action committee America PAC.

Arizona voter Jacqueline McAferty said that she was misled into believing that winners of Musk's giveaway were randomly chosen, when they were actually handpicked.

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As a result, McAferty alleges, as part of a class-action lawsuit, that she was wrongly influenced into providing personal information to Musk's America PAC.

US District Judge Robert Pitman in Austin, Texas, ruled that McAferty's allegations were plausible and, as a result, ordered Musk to face the lawsuit.

Musk had previously sought a case dismissal, claiming that he had not run an illegal lottery and that the payment was not a "prize" but instead a payment for becoming a spokesperson of America PAC.

"Make no mistake: an eligible voter's opportunity to earn is not the same thing as a chance to win," Musk said of the giveaway.

Pitman disagreed with Musk's assessment, pointing out that statements surrounding the giveaway had used terms like "award" and had said that money could be "won."

"It is plausible that plaintiff justifiably relied on those statements to believe that defendants were objectively offering her the chance to enter a random lottery," Pitman wrote in the judgment.