Elon Musk is on trial this week for possible fraud after tweeting in 2018 that he was balanced to take Tesla private. In a federal courtroom in San Francisco, where Tesla CEO Musk was scheduled to be summoned to testify, the choosing of jurors who would consider the proof started. The episode began in August 2018 when Musk tweeted that he had the funds to take Tesla private, flashing a wild pitch in the price of the firm’s stock.
Stockholders sued Musk for allegedly commanding them billions of dollars with the tweet that said finance was “secured” to buy out the firm’s shareholders. “The plaintiff alleges that these tweets were materially false and artificially affected the price of Tesla stock and other securities after they were made,” US District Court Judge Edward Chen said while outlining the case for possible jurors. According to Chen, the Tesla tycoon’s lawyers will contend that any attempts to prove that Musk’s tweet was “materially” false, or that shareholders experienced hurt, would fail at trial.
Last week, Chen deserted Musk’s request to transfer the proceedings to Texas, the southern state where Musk migrated Tesla’s headquarters. According to the defense attorneys in San Francisco, the multi-billionaire, who purchased Twitter in late October and has been under fierce fire for his actions since taking control of the social media firm, was denied a fair trial. Musk radically changed the site’s content moderation procedures after taking control of Twitter, releasing more than half of the 7,500 employees. In 2018, Musk sent a brief tweet that caught the attention of law enforcement.
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