An impartial jury in San Francisco came to the conclusion that Elon Musk could not be held liable for any tweets or public statements he made about the funding of the company.
Shareholders filed the case after Elon Musk tweeted many times that he had secured money to take Tesla public at a price of $420 per share. Musk requested that the trial be moved from California to Texas, where he anticipated the climate would be friendlier, but his request was not granted. Musk hoped that the trial would take place in Texas.
On the 20th of January, Musk testified in his trial and stated that the stock price of Tesla was not affected by his tweets.
Musk believes that you are drawing erroneous links between the content of tweets and the price of stocks. Because of this, I provided the following illustration: “Even if I tweet that I think a stock’s price is too high, it still goes up.”
Despite the fact that Tesla’s stock price has dropped by more than forty percent year-over-year, it has recently made a comeback, climbing seventy-five percent since the beginning of the year. At the end of the week, the price of a share of stock was finally determined to be $189.89.
Before the investor complaint was filed, Musk reached a settlement with the Securities and Exchange Commission (SEC) regarding similar tweets about taking Tesla private. In the settlement, Musk “did not accept or dispute the claims.” However, the corporation was ordered to pay fines of $40 million and put in place measures to monitor Musk’s interactions.
Between November 2021 and January 2023, the volatility in the price of Elon Musk Tesla’s stock caused Musk to lose almost $200 billion in net worth; but, when the stock price began to recover, he gained an amazing $12 billion in net worth in just one week. This is an incredible turnaround.