Tesla Inc. (NASDAQ:TSLA) bull Ross Gerber has voiced doubts about the effectiveness of an executive order in overriding existing laws concerning the TikTok ban.
What Happened: Gerber’s comment came in response, to Donald Trump’s announcement about his intention to issue an executive order to delay the federal ban on TikTok.
The CEO of Gerber Kawasaki Wealth and Investment Management took to X, formerly Twitter, and said “I don’t think an executive order can supersede a law when it comes to national security.”
He added, “The Supreme Court has already ruled it constitutional. TIKTOK IS A CHINESE WEAPON.”
See Also: Mark Zuckerberg Lauds Sheryl Sandberg Amid Blame For Meta’s DEI Program: ‘She Did Amazing Work’
Why It Matters: Earlier on Sunday, Trump took to Truth Social, urging companies to prevent TikTok from going dark and promising an executive order to extend the ban’s implementation period.
The ban stems from a 2024 law addressing national security concerns over TikTok’s Chinese ownership. The law requires app stores and cloud providers to stop hosting TikTok unless it is sold by its parent company, ByteDance.
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Trump’s executive order aims to temporarily halt this law, which was upheld by the Supreme Court on Friday. However, the executive order’s legality and effectiveness remain uncertain, as it may face legal challenges.
The law allows a 90-day extension if a buyer is found, but only if significant progress is made toward a non-Chinese deal, and it must be completed within 90 days. It’s unclear if this option still exists since the law is in effect, noted the New York Times.
TikTok has argued that a sale isn’t feasible due to its global operations. China has also indicated it would block the export of TikTok’s crucial video-recommendation technology.
Meanwhile, on Saturday, Jeff Bezos-backed Perplexity reportedly made a $50 billion bid to merge with TikTok U.S., although Tesla CEO Elon Musk’s social media app X is seen as a strong contender for the acquisition.
Previously, Tesla investor Gary Black raised concerns over Musk’s potential acquisition of TikTok’s U.S. operations, cautioning that it could hurt the EV giant’s stock.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
