The case about the controversial tweet that Elon Musk published in 2018 continues its course with a new ruling that will benefit those investors who denounced the tycoon for drastically changing the share price. District Judge Edward Chen has highlighted that the publication in which Musk, remember, claimed to buy back Tesla shares to make this a private company, was inaccurate. Chen also concluded that “no reasonable jury could find that Mr. Musk did not act recklessly“.
According to Bloomberg, the conclusion It was carried out a few weeks ago through a court filing, but the sentence has been kept secret until now thanks to Tesla's strategy, which has tried to hide as much as possible the information from regulatory scrutiny, as well as the shareholder criticism on the wave of controversial tweets that the tycoon published in 2018. In any case, the court's decision considerably benefits those investors who sued Elon Musk after he the famous tweet had a considerable impact on the share price.
The objective of the shareholders, specifically, is to recover the millionaire losses caused by the fluctuations in the price of the shares. All this, while Elon Musk, who held talks with the Saudi Arabian Public Investment Fund about the privatization of Tesla, maintains that his initial plan to turn Tesla into a private company with “secured financing”, “was solid”, according to highlights the aforementioned medium. Musk's statements, however, do not coincide with those of the California Northern District judge.
“No reasonable jury could find that Mr. Musk did not act recklessly given his clear knowledge of the discussions that took place at the 7/31/2018 meeting” with the Saudis.
Judge Edward Chen has detailed.
Elon Musk also faces other controversial tweets from 2018
The tweets about the unions in Tesla published by Elon Musk 2018, also continue through a process judicial. A few weeks ago, three judges considered that the publication was a threat to the company's workers. These suggested that employees would lose their shares if they decide to unionize. The judges also believe the post is a violation of labor rights and insist the tweet should be removed.
Elon Musk's tweet, specifically, says the following: “Nothing prevents the Tesla team at our auto plant from electing a union. They could do it tomorrow if they wanted to. But why pay union dues and give up stock options for nothing? Our safety record is twice as good as when the plant was with the UAWand they all have health insurance.”
Elon Musk and his company representatives, meanwhile, are upholding their appeals. They do so both in the case of the tweet related to the privatization of Tesla, as in those related to unions.
