Elon Musk admits tweet was to inform Tesla shareholders of potential take-private transaction; jury to decide if tweet was material.
Elon Musk is currently on trial for a tweet he made in 2018 claiming he had secured funding to take Tesla private. The jury is tasked with deciding whether the tweet was material, or significant enough to impact investor decisions. During his testimony, Musk admitted that he wanted shareholders to rely on the tweet, and that he expected there to be an increase in the stock price. He also said he posted the tweet because he was worried the Financial Times might publish information about his plans, and wanted all Tesla shareholders to know he was considering the transaction.
Musk’s tweet was in response to conversations he had with representatives of Saudi Arabia’s sovereign wealth fund, which he believed were committed to investing as part of a take-private transaction. However, the tweet was false, and the jury must now decide whether it was material or not. If the jury finds that Musk’s tweet was material, he could face significant legal and financial consequences.
The trial is an important moment for Musk and for Tesla, as it will help to determine whether his tweet was significant enough to influence investor decisions. It is also a reminder of the power of social media, and the potential consequences of posting misleading or false information. If the jury finds that Musk’s tweet was material, it could have far-reaching implications for the way social media is used by public figures, and could set a precedent for the legal consequences of posting false or misleading information.
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