Tesla CEO Elon Musk and his company were found not liable by a U.S. jury for misleading investors when Musk tweeted in 2018 that he had “funding secured” to take the electric car company private.
The case arose after investors claimed Musk defrauded them when he tweeted in 2018 that he was thinking about taking the company private and had “funding secured” to do so.
Tesla shareholders claimed Musk misinformed them on Aug. 7, 2018, when he tweeted that he was contemplating taking the company private at $420 per share, a 23% premium to the previous day’s close, and that he had “funding secured.” They claim Musk lied later that day when he tweeted, “Investor support is confirmed.”
The result is a bitter defeat for shareholders who attempted to recoup trading losses caused by fluctuations in Tesla shares after Musk posted the messages. Musk abandoned his plan to take Tesla private about two weeks after his initial tweets. The investors sued him and Tesla for fraud, alleging that he made public claims knowingly or recklessly, causing them to lose money.
After the jury’s verdict, Musk thanked and wrote on Twitter, “Thank goodness, the wisdom of the people has prevailed! I am deeply appreciative of the jury’s unanimous finding of innocence in the Tesla 420 take-private case.’
The sources for this piece include an article in Axios.