After a 3-week long trial at San Francisco Federal Court, jurors attentively heard statements from the plaintiff and Tesla executives such as Elon Musk and his financial advisers. After thorough deliberation, they reached their verdict: Musk was not guilty of any harm caused to investors due to the tweet he had posted 4.5 years ago.
“No Relationship Between Elon Musk Tweets and Stock Movements”
In 2018, Tesla CEO Musk declared via a Twitter post that he was pondering taking the company private by paying out $420 per share and noted that funding had been secured for this. However, many investors of Tesla filed a lawsuit alleging Musk deliberately deceived them with his statement and thus caused billions in losses from imbalances in the value of their shares.
Last week, Elon Musk concluded a three-day-long defense claiming that his tweets had no correlation with Tesla’s share prices. When he made the post in question, he mentioned an unwritten promise from the Saudi Arabian Public Investment Fund to fund Tesla‘s exit from public trading.
With regards to his tweet, Musk clarified that another justification for him providing funding was so he could divest SpaceX shares. He underlined that he had not intended to misguide investors when sharing this information and concluded by stating it was out of a desire to do the right thing.
Tesla Shareholders Are Not Happy With The Decision
Nicholas Porritt, a lawyer for the Tesla shareholders, passionately proclaimed: “Our society is based on regulations that maintain order and protect us from anarchy. These rules must be applied to Elon Musk just like everyone else.” Mr. Musk‘s attorney, Alex Spiro, then countered with an assertion of his own: “Just because it was a poorly-crafted tweet doesn’t mean it constitutes fraudulence.” After the ruling had been passed down by the court of law, Nicholas expressed disappointment in stating: “We are not content with the verdict and will further evaluate our next moves accordingly.”
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