Blog

Feb 3, 2023

Jury finds Elon Musk did not defraud Tesla investors with infamous ‘funding secured’ claim

Posted by in categories: Elon Musk, finance, law, sustainability, transportation

A jury found Elon Musk not liable for costing investors when he issued a series of tweets saying he had “secured” funding to take the electric car maker private.

The Friday verdict, issued by a nine-person Northern California jury, represents a legal victory for the 51-year-old billionaire, who has seen the value of his Tesla holdings decline some 44% over the past year.

During the trial, Musk personally took the witness stand to defend the tweets, testifying he believed he had a handshake agreement in 2018 with Saudi Arabia’s Public Investment Fund to convert Tesla, which is a publicly traded company, into a private one. It was the Saudis, he said, who subsequently reneged on the deal.

…however I found that the trial brings up the practice of short selling, which is why since the 2007 financial crisis has been made illegal everywhere but the USA. For shot sellers to actually try to sue someone is bizarre.

Comments are closed.