Musk, Telsa win securities fraud battle over that 'funding secured' tweet
Elon Musk and Tesla have been found not liable by a jury in a securities fraud trial in which the billionaire and his automaker were accused of misleading investors.
The verdict came on late Friday afternoon at a federal court in San Francisco. It was claimed Musk and Tesla cheated shareholders by tweeting in August 2018 about taking the car manufacturer private at $420 per share – a business move that never actually materialized. According to Musk, Saudi Arabia’s sovereign wealth fund had informally agreed to put up cash to help take Tesla off the stock market, but that apparently fell through. Amid that drama, the tycoon – who now owns and runs Twitter – emitted the following fateful tweet:At the time, Tesla was trading at about $23 a share. It peaked at about $407 in November 2021, and is now at $198 apiece.against Musk over that tweet, pointing out there appeared to be no actual funding in the bag for such a move.
Then investors moved in, and sued Musk for securities fraud: they claimed his tweets about Tesla going private were deliberate reckless nonsense that made the stock price volatile, ultimately costing them money.
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