Davis, California, is poised to consider a resolution that would effectively bar the city from doing business with companies owned or controlled by Elon Musk, a move prompted by constituent concerns over the billionaire’s business practices and political statements. The proposal, scheduled for discussion at a city council meeting this week, would prevent the city from entering into new contracts with firms including Tesla, SpaceX, Starlink, and xAI, and encourage divestment from their stock, according to reporting from Drive Tesla Canada.
The resolution, titled “Resolution to End Relationship with Companies Controlled by Elon Musk and to Encourage CalPERS to Divest from These Companies,” outlines a series of restrictions aimed at severing financial ties with Musk’s ventures. If approved, the city would also be prohibited from purchasing goods and services from companies affiliated with Musk, including Neuralink and The Boring Company, as reported by Davis Vanguard.
The move comes as Musk increasingly focuses on space exploration, announcing plans to prioritize the development of a city on the Moon, a project he believes could be realized within a decade. While his long-term goal of establishing a colony on Mars remains, Musk has indicated that lunar development is a more achievable short-term objective, according to a post on X. This shift in focus follows a report in the Wall Street Journal detailing SpaceX’s plans to prioritize lunar missions, targeting an uncrewed lunar landing in March 2027.
The decision by Davis officials follows a growing trend of scrutiny towards Musk’s business empire. The city’s action is occurring amid a broader competition between Musk’s SpaceX and Jeff Bezos’ Blue Origin for dominance in the burgeoning space economy. Bezos’ company has long focused on the Moon as a key component of a new space-based economy, setting the stage for a direct rivalry with Musk, as reported by Ziare.com.
The proposed resolution in Davis arrives as SpaceX recently acquired xAI, its artificial intelligence company, in a deal that valued the combined entity at approximately $1.25 trillion. This acquisition underscores Musk’s continued investment in cutting-edge technologies, even as his companies face increased public and political attention.
As of Wednesday, February 18, 2026, neither Musk nor representatives from his companies have publicly commented on the proposed resolution in Davis. The Davis City Council is scheduled to discuss the matter further this week, with a vote expected to follow.
