PanamaTimes

Saturday, Sep 07, 2024

Elon Musk and Tesla going on trial over claims his tweets cost investors billions of dollars

Elon Musk and Tesla going on trial over claims his tweets cost investors billions of dollars

Elon Musk, who has since bought Twitter, caused a stir on the social media platform in 2018 when he claimed he had secured funding to take Tesla private.
Elon Musk and Tesla are set to go on trial over allegations that shareholders were defrauded out of billions of dollars by his tweets.

The company's chief executive wrote in 2018 that he had "secured" funding to take the electric carmaker private and later that investor backing was "confirmed", causing shares to soar and then fall.

Less than three weeks later, Musk backtracked on the plan.

Investors who bought or sold stock in the days after the tweets are seeking unspecified damages, but have claimed Musk's tweets cost them "billions".

Seven current and former Tesla directors are among the defendants, who have denied any wrongdoing.

Mr Musk - who was forced to step down as company chairman after a $40m (£32.5m) settlement with the US regulator - may take the stand in the case, according to court documents.

Opening arguments could begin in San Francisco on Tuesday, once the jury has been selected.

The judge, Edward Chen, denied a request by Musk to have the case moved to Texas last week, with the billionaire expressing concern that potential jurors in California would be bias against him.

He cited negative media coverage of the thousands of jobs he has cut at Twitter, which is based in San Francisco, following his takeover of the social media platform last October.

The jury will be tasked with deciding whether Musk's tweets influenced investors, whether he acted knowingly, and whether damages should be awarded.

Judge Chen has already ruled that the statements the SpaceX owner made were untrue, but the defendants will argue that he had good reason to believe funding for taking Tesla private was secured.

The trial, which comes against the backdrop of sliding shares in the company, is tipped to last three weeks.
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
BRAZIL’S SUPREME COURT MINISTER ORDERS EXPLANATION ON X BLOCKING
Porn streamer OnlyFans paid owner $630mn in dividends
Donald Trump will not face sentencing over his 'hush money' conviction before the US presidential election on November 5, after a Manhattan judge granted his request to delay the proceeding
Return of Brazilian Artworks to Bahia
France Pilots Mobile Phone Ban in Schools
WHO-Led Study Finds No Link Between Mobile Phones and Brain Cancer
Kamala Harris is in Detroit and has a new accent again
EU Rejects Maduro’s Election Win Claim in Venezuela
Former Red Brigades Member Arrested in Argentina After 40 Years on Run
Elon Musk Accuses Brazilian Supreme Court Justice of Election Interference
Universe May Have Had a Pre-Big Bang 'Secret Life'
Ecuador's Narco Violence Threatens Scientists and Conservation Efforts
Brazilian Judge Alexandre de Moraes Blocks Elon Musk's X
Nаkеd American woman gropes security
Tsimane Tribe: Secrets to Health and Slow Ageing
OpenAI Blocks Iranian Group's ChatGPT Accounts for Election Interference
WHO Declares Mpox Global Health Emergency Again
Decline in World Records at Paris Olympics: An Analysis
EU Pressures Elon Musk Over Trump Interview
UN Reports Lowest Global Youth Unemployment Rate in 15 Years
Fatal Plane Crash Near Sao Paulo
Snoop Dogg: The Feel-Good Spirit of the Paris Olympics
McDonald's Worker Sets Restaurant On Fire Over Customer Frustration
Kamala Harris Confirmed as Democratic Candidate for US Presidential Election
Controversies at the Paris Olympics
Elon Musk Accepts Fight Challenge from Venezuelan President Nicolas Maduro
First Case of 'Virgin Birth' in Endangered Shark Species in Italy
G20 Fails to Reach Agreement on Global Billionaire Tax
Mexican Drug Lords El Mayo and El Chapo's Son Arrested in Texas
World's Hottest Day Recorded on July 21
Joe Biden Withdraws from 2024 US Presidential Race
A Week of Turmoil: Key Moments in US Politics
Global IT Outage Sparks Major Concerns
Global IT Outage Unveils Digital Vulnerabilities
Secret Service Criticized for Lack of Sniper Protection During Trump Shooting
Colombian Court Annuls Amazon Tribes’ Carbon Credit Deal
Sunita Williams Safe on ISS, to Address Earth on July 10
Biden Affirms Commitment To Presidential Race
Boeing Pleads Guilty Over 737 MAX Crashes
Beryl Storm Hits Texas, Killing 2 and Causing Major Power Outages
2024 Predicted to Be World's Hottest Year
Macron Faces New Political Challenges Despite Election Relief
Florida Man Arrested Over Attempt to Withdraw One Cent
Anger mounts at Biden’s top team after disastrous debate
Bolivian President Luis Arce Denies 'Self-Coup' Allegations
Steve Bannon Begins 4-Month Prison Sentence
Biden Warns of 'Dangerous Precedent' After Supreme Court Immunity Ruling in Trump Case
Elon Musk Accuses Kamala Harris of Misleading Post on Trump's Abortion Stance
Hunter Biden Sues Fox News Over 'Revenge Porn' Allegations
New York Times Editorial Board Urges Biden to Exit Presidential Race
×