Elon Musk, the CEO of Tesla, was accused of misleading investors in a 2018 tweet in which he claimed finding funds to turn Tesla into a private business. A US jury found him not guilty. Following the decision, Tesla stock increased 1.6% after hours of trading.
A class action lawsuit was launched against Musk, alleging that the tech tycoon acted irresponsibly in an effort to punish investors who had bet against the firm. The tweets drove the share price of Tesla on an up-and-down roller coaster.
Then, Musk settled for $20 million and agreed to resign as chairman of the Tesla board.
On August 7, 2018, Musk tweeted, ‘Am considering taking Tesla private at $420. Funding secured.’
According to reports, the nine jurors in California court took less than two hours to reach their verdict on Friday afternoon.
While appearing on the witness stand, Musk said, ‘Just because I tweet something does not mean people believe it or will act accordingly.’
Shareholders had argued that ‘funding secured’ suggested more than a verbal agreement.
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