Tesla CEO Musk "privatization" lawsuit opens: previously convicted of misleading investors
Beijing time, October 26, according to reports, Tesla CEO Elon Musk (Elon Musk) "privatization" lawsuit continues to hear today. A San Francisco district judge initially ruled earlier this year that Mr Musk's tweet about the privatisation of Tesla misled investors.
For investors, today's trial is crucial, and the judge will hear arguments from both sides about whether Musk deliberately deceived investors. The class action case began in August 2018, when Mr Musk announced on Twitter that he was considering taking Tesla private at $420 a share. Musk also said at the time that the privatisation funds were already guaranteed and that the company's investors supported the decision.
The news pushed Tesla's share price up about 13% at one point on the day, when Tesla's share price closed at $379.57. But then, with the reversal of the situation, Tesla's share price declined all the way. To this end, Tesla investors launched a class action, alleging that Musk issued a false or misleading statement.
In April this year, presiding judge Edward M. Chen) made a preliminary ruling, saying that Musk had committed the crime knowingly. The judge believed that Musk deliberately made a false statement when he posted the tweet, saying that he had raised funds for privatization. The judge also said that no rational jury would consider Musk's tweet not misleading.
Mr Musk insists that investors are wrong to accuse him of manipulating share prices. Mr Musk also said his short-lived plan to privatise Tesla was reliable based on his discussions with the Saudi Arabian Public Investment Fund (PIF).
According to Judge Edward Chen's preliminary ruling in April, investors appear to be winning the lawsuit. But to avoid confusing jurors, Edward Chen may instruct them to exclude his previous decisions, according to legal experts.
Lawyers for Mr Musk and Tesla also said it was up to the jury to decide whether Mr Musk knew he had misled investors. "Musk's knowledge and state of mind at that time must be taken into account," Musk's lawyer said in a document. "
Lawyers representing hundreds of Tesla investors involved in the class action have never publicly disclosed how much compensation they are seeking. But a recent court filing by Mr Musk and Tesla shows that billions of dollars are at stake.
