Elon Musk found not responsible in trial over Tesla tweets in 2018
A jury found Elon Musk not guilty of fraud in a series of tweets in 2018 in which he declared he had “secured funding” to take electric car company Tesla private.
The tweets caused Tesla’s stock price to fluctuate dramatically. Shareholders sued Musk, claiming the billionaire acted recklessly.
“Thank God, the wisdom of the people prevailed!” Musk tweeted after the verdict on Friday.
“I am deeply grateful for the unanimous conclusion of the not guilty jury in the Tesla 420 privatization case.”
What did Musk tweet?
On August 7, 2018, Musk tweeted that he was considering taking Tesla private at $420 (€388) per share — about 23% higher than the previous day’s closing price.
Musk tweeted that he had “secured funding” and said the next day that “investor support is confirmed”.
This caused the stock price to rise, but when it became clear that the alleged purchase was not going to happen, the stock price dropped again.
In a separate lawsuit against Musk, the US Securities and Exchange Commission alleged that the billionaire had rounded the alleged purchase price to $420 a share because he had recently learned about the “significance of the number in marijuana culture” and thought that your girlfriend would find it funny. .
Musk’s lawyer, Alex Spiro, said the tweet was “technically inaccurate”, but added that “a bad tweet doesn’t make it a fraud”.
“The whole case is based on poor choice of words,” he said. “Who cares about poor choice of words?”
How did shareholders react?
An economist hired by Tesla shareholders has estimated investor losses at up to $12 billion.
“We are disappointed with the verdict and are considering next steps,” said Nicholas Porritt, an attorney representing the shareholders.
zc/fb (AP, AFP, Reuters)
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.