A California city is on the brink of a groundbreaking decision that could reshape its relationship with some of the most influential companies in the world—those tied to Elon Musk. But here's where it gets controversial: The Davis City Council is set to debate a resolution that would ban the city from entering into new contracts with Tesla, SpaceX, Starlink, xAI, and other Musk-owned entities. This move, sparked by resident concerns, could also push for divestment from these companies' publicly traded securities. The discussion is scheduled for tonight (Tuesday, February 17, 2026), and it’s already stirring up debate.
And this is the part most people miss: The resolution, titled “Resolution Ending Engagement With Elon Musk-Controlled Companies and To Encourage CalPERS To Divest Stock In These Companies,” goes beyond just contracts. If passed, it would bar the city from purchasing goods or services from Musk’s businesses, including Neuralink, The Boring Company, and Tesla RoboTaxis. It also calls for terminating existing agreements where possible and prohibits the city from using Musk-affiliated platforms like X (formerly Twitter) for official communications. Even lobbyists representing these companies would face scrutiny.
The resolution doesn’t stop at city operations—it aims to influence broader investment decisions by urging the California Public Employees’ Retirement System (CalPERS) to dump Tesla stock and related securities. The preamble emphasizes Davis’s commitment to transparency, accountability, and democratic governance, while pointing to regulatory issues, lawsuits, and investigations involving Musk’s companies as reasons for the proposed ban. Boldly put, the city argues that using Musk-controlled products doesn’t align with its values.
While the measure wouldn’t immediately impact city finances—since Davis currently has no investments in Musk’s companies—it could limit future flexibility in contracts, services, or investments. Council members have several options: approve, modify, refer for review, or reject the resolution outright. We’ll be watching tonight’s meeting closely to see how this unfolds.
Here’s the thought-provoking question: Is this a principled stand or an overreach? Does cutting ties with innovative companies like Tesla and SpaceX align with a city’s long-term interests, or does it risk isolating Davis from cutting-edge technology? Let us know your thoughts in the comments—this debate is far from over. And if you’re considering buying a Tesla, remember to use our referral link (https://www.tesla.com/en_ca/referral/darryn55317) to get three months of Full Self-Driving (FSD)!
