US judge considers controversial Musk tweet on Tesla ‘false’: Investors
Elon Musk’s tweet in 2018 claimed that he had received funding to take over Tesla as a private company, which was considered “misleading and misleading” by a judge, according to documents filed by investors against his electric car company.
Following the August 7, 2018 tweet, Tesla accused stockholders of bond fraud over stock market losses, which caused stock prices to fluctuate sharply for several days.
In a lawsuit filed late Friday, plaintiffs asked Federal Judge Edward Chen, who is in charge of the case, to order Musk to stop publicly claiming that Tesla was “safe” for $ 420 a share, as he reiterated on Thursday.
In the past, the billionaire entrepreneur said he was in talks with Saudi Arabia’s sovereign property fund at the time and hoped he would reach an agreement. But no deal has been announced.
According to the filing, Chen recently concluded in an undisclosed order that Musk’s statements were “false and misleading” and that he had done so “irresponsibly and with full awareness of the facts he had misrepresented in his tweets.”
Plaintiffs have accused Musk of engaging in “a high-profile public campaign to present a contradictory and misleading story regarding August 7, 2018 tweets” – which could affect the judges appointed to the trial later this year.
The Securities and Exchange Commission, the US market regulator, also accused him of fraud following tweets.
He eventually agreed to a deal to settle the allegations, which required Tesla’s lawyers to review any social media posts that are considered “material” to shareholders.
He also paid a $ 20 million fine and resigned as chairman of Tesla.
Musk, who unveiled the $ 43 billion hostile acquisition attempt on Twitter, said on Thursday that he had been pushed into a deal with the SEC to save Tesla.
<div class="article-main__explore my-4 d-print-none"> Elon Musk aims to end restrictions on his Tesla tweets </div> <hr class="mb-4"/> <p class="article-main__note mt-4"> © 2022 AFP <!-- print only --> <div class="d-none d-print-block"> <strong>Quote</strong>: US judge finds controversial Musk tweet on Tesla 'invalid': Investors (2022, April 17) 17 April 2022 https://techxplore.com/news/2022-04-deemed-controversial-musk-tweet-tesla.html Retrieved from This document is subject to copyright. No part may be reproduced without written permission, except for any reasonable manipulation for the purpose of personal study or research. Content is provided for informational purposes only. </div> </div>https://connect.facebook.net/en_US/sdk.js</p>