BREAKING NEWS: Elon Musk did NOT violate federal securities laws by tweeting about Tesla’s possible privatization, jury finds
- Elon Musk has won a major victory in court after a jury found he was not liable for 2018 tweets about Tesla’s possible privatization
- On Friday afternoon, the nine-member jury said the investors in the class action lawsuit could not prove they were misled by tweeting about a potential deal
Elon Musk has won a major victory in the courtroom after a jury found he was not responsible for misleading investors in 2018 tweets about Tesla’s possible privatization.
On Friday afternoon, the nine-member jury said investors in the class action lawsuit could not prove they were misled by the Tesla CEO.
In 2018, Musk tweeted that he had the funding to take Tesla private, though it turns out he hadn’t received an ironclad pledge for an abandoned deal that would have cost $20 billion to $70 billion to complete.
The tweets sent Tela shares higher during a 10-day period covered by the lawsuit, before falling after Musk abandoned a deal based on evidence presented during the three-week trial.
Elon Musk, center, exits a federal courthouse in San Francisco on Friday after a jury found he was not responsible for misleading investors in 2018 over a tweet
Pictured: A court sketch of Musk awaiting jury verdict on Friday
The infamous 2018 read, “I am considering privatizing Tesla for $420. Funding secured.”
This was followed by another tweet stating that trading was imminent: “Investor support is confirmed. The only reason this is not certain is that it is subject to a shareholder vote.’
Alex Spiro, Musk’s attorney, admitted the 2018 tweets were “technically inaccurate,” but he told jurors, “Just because it’s a bad tweet doesn’t make it a scam.”
The final day of the trial was notable when Musk appeared in court despite not being required by law to be present.
He sat stoically in court as he was vilified as a wealthy narcissist whose reckless behavior could risk “anarchy,” while his defense hailed him as a visionary looking out for the “little guy.”
If the jury had ruled that the tweets duped investors, Musk and Tesla would have faced billions in damages.
Although his presence was not required, Musk nevertheless appeared in court after a four-year dispute with Tesla investors who claimed he had defrauded them
Investors said Tesla’s value shifted due to Musk’s 2018 tweets claiming he would take the company private for $420 a share
Nicholas Porritt, an attorney for Tesla shareholders in the trial, had urged the jury to censure Musk for his “lax relationship with the truth.”
“Our society is based on rules,” Porritt said. “We need rules that protect us from anarchy. Rules should apply to Elon Musk like everyone else.”
Glen Littleton, the joint plaintiff in the case, testified that he liquidated positions after Musk’s tweet because he believed Tesla was going private, The Wall Street Journal reports.
“This posed a threat to my existence,” Littleton told the court.
This is an evolving story.