Tesla CEO Elon Musk and his electric vehicle (EV) maker are not liable for securities fraud over a tweet the billionaire entrepreneur posted way back in 2018.
The tweet in question claims that Musk already had funding to take the all-electric car maker private. So shareholders recently sued the big boss of Tesla, alleging securities fraud.
(Photo : Justin Sullivan/Getty Images)
SAN FRANCISCO, CALIFORNIA - JANUARY 24: Tesla CEO Elon Musk leaves the Phillip Burton Federal Building on January 24, 2023 in San Francisco, California.
Elon Musk Found NOT Liable over Tesla Tweet
According to a recent report by CNBC, a jury from the San Francisco federal court found Musk and his giant EV firm not liable for securities fraud over tweets that the billionaire posted years ago.
It is worth noting that the shareholders of Tesla recently took the new Chief Twit of Twitter, Musk, who also sits as the CEO of SpaceX, to court. These folks sued the tech entrepreneur over a series of tweets that he made roughly four years ago.
In his tweets, Musk announced that he had "funding secured" for taking the all-electric car maker private. And he wants the price for each share to the tune of $420.
The South China Morning Post reports that the price Musk wants to take his giant firm private is actually 23 percent higher than the share price on that closing day.
He went on to tweet, saying that "investor support is confirmed." Thus, Tesla shareholders are saying that Musk lied when he posted that.
Since he posted such a tweet, CNBC notes in its report that the share price of the EV maker has started to be more volatile. It has reached extreme lows and peaked with all-time highs. It has persisted for several weeks.
Read Also: Elon Musk Locks his Twitter Account to Test Viral Hack to Gain More Visibility-Gets Mocked by Users
Musk's Response
Despite that, Musk told jurors of the Tesla tweet trial that he was telling the truth in his series of tweets.
The Tesla boss stated while he was in the witness box that actually had a verbal commitment from the Sovereign Wealth Fund of Saudi Arabia. He then believes he had already secured the funding needed to take Tesla private.
(Photo : OLIVIER DOULIERY/AFP via Getty Images)
In this photo illustration, a phone screen displays the Twitter account of Elon Musk with a photo of him shown in the background, on April 14, 2022, in Washington, DC. - Tesla chief Elon Musk has launched a hostile takeover bid for Twitter, insisting it was a "best and final offer" and that he was the only person capable of unlocking the full potential of the platform.
But then again, the deal, which he claims to have been closed in a verbal commitment, never materialized. Until today, Tesla has yet to be taken private.
And now that Musk was found not liable for fraud over his tweets, he has taken to Twitter to respond.
The tech entrepreneur says he is "deeply appreciative of the jury's unanimous findings." He adds that "the wisdom of the people has prevailed!"
Related Article: Elon Musk Announces Higher Priced Subscription Tier that Allows Zero Ads
