Elon Musk, the CEO of Tesla, and his electric vehicle (EV) manufacturer are not responsible for securities fraud because of a tweet the multibillionaire businessman sent in 2018.
According to the disputed post, Musk already has the resources necessary to take the all-electric car manufacturer private. Therefore, Tesla’s CEO was recently sued by shareholders on the grounds of securities fraud.
San Francisco, California, on January 24thOn January 24, 2023, Elon Musk, the CEO of Tesla, exits the Phillip Burton Federal Building in San Francisco, California.
Elon Musk Found NOT Liable over Tesla Tweet
In response to tweets the billionaire made years ago, a jury in the San Francisco federal court recently declared Musk and his massive EV company not guilty of securities fraud, according to a recent article by CNBC.
It’s important to remember that the Tesla shareholders just sued Musk, the new CEO of Twitter and SpaceX, in court. These people filed a lawsuit against the software entrepreneur because of a slew of tweets he sent out about four years ago.
Musk tweeted that he had “financing secured” to take the manufacturer of all-electric vehicles private. Additionally, he demands a $420 premium for each stake.
According to The South China Morning Post, the price Musk wants to pay to take his massive company private is really 23% greater than the share price on that final trading day.
After that, he tweeted, “Investor support is confirmed.” Tesla stockholders claim that Musk lied when he made the statement.
The share price of the EV manufacturer has been more erratic since he sent out such a tweet, according to a report from CNBC. Extreme lows and record highs have both been reached. It’s been around for a while.
Musk Response
Musk insisted that he was telling the truth in his sequence of tweets to the jury in the Tesla tweet trial despite this.
While testifying, the CEO of Tesla said that he received a verbal promise from the Saudi Sovereign Wealth Fund. Then, according to him, he already had the money in place to take Tesla private.
However, the arrangement, which he asserts was finalised in a verbal pledge, never happened. Tesla has not yet been taken private.
Musk has responded on Twitter after being cleared of fraud charges related to his tweets.
“Deeply appreciative of the jury’s unanimous findings,” the Internet entrepreneur continues, “is how I feel.” “The wisdom of the people has prevailed,” he continues.
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