SpaceX has reportedly evacuated its employees from Brazil and advised them against traveling to the country. This move comes amidst a legal battle between Elon Musk and Brazil’s Supreme Court over his social media platform X.
The conflict escalated after the court ordered X to remove accounts spreading hate speech and misinformation. In August, X ceased operations in Brazil to protect its employees’ safety. However, the court’s pressure continued, ultimately banning X until it complies with legal requirements, including paying fines and appointing a legal director in Brazil.
As a further measure, the court froze SpaceX’s Starlink finances in Brazil, preventing any further financial transactions. This move has sparked concern among foreign investors, with Arthur Lira, leader of Brazil’s lower house of Congress, warning that it could increase legal uncertainties and deter other businesses.
Musk responded to the reports, claiming that SpaceX is a separate company and has not broken any laws. He expressed frustration on social media, threatening to seize Brazilian government assets unless the property belonging to his companies, X and SpaceX, is returned.
The legal battle has broader implications for Musk’s ventures. Wall Street Journal business columnist Tim Higgins warned that the standoff with Brazil could impact other businesses, including Tesla. The ongoing dispute could affect investor confidence and operations across Musk’s enterprises.
Furthermore, Starlink complied with the Brazilian court’s order to block access to X. The company stated that it continues to pursue legal avenues to address the situation.
The Brazilian government is also considering taxing large tech companies to meet its 2025 fiscal goals. This move, coupled with the ban on X and freezing of Starlink finances, signals a broader regulatory shift that could impact other multinational corporations operating in Brazil.
