The trial against Elon Musk and Tesla over Musk’s “funding secured” tweet in 2018 has come to a close with a favorable outcome for the CEO and the company. A US jury cleared the two of any wrongdoing and stated they were not responsible for providing false information to investors. This decision was reached after only two hours of deliberation and was considered significant for Musk, who is known for his frequent Twitter usage. Analysts see this as a closure of a dark chapter for Musk and Tesla, and some believe the outcome will only encourage Musk to continue using his impulsive communication tactics. However, the outcome has raised questions about the effectiveness of anti-securities fraud law in modern markets. Regardless, this case serves as a reminder of the potential consequences that come with public statements made on social media platforms.
The CEO of Tesla Inc, Elon Musk, was cleared of fraud charges by a US jury, who deemed that he and his company were not responsible for false information provided to investors through his 2018 tweet that claimed to have secured funding to make Tesla a private company. The plaintiffs sought billions in compensation, but the jury reached a unanimous decision in just two hours. Analysts noted the significance of the verdict for Musk, who frequently communicates via Twitter and has faced several legal and regulatory issues due to his impulsive use of the platform. Musk’s lawyer argued that the tweets were “technically inaccurate” but that investors only cared about the possibility of a buyout. Throughout the three-week trial, Elon Musk spent nearly 9 hours on the witness stand and stated that he believed his tweets to be truthful at the time.