Tesla’s billionaire CEO Elon Musk goes on trial Tuesday after the company’s shareholders filed a lawsuit claiming he manipulated the stock price by posting a controversial message on his Twitter profile about taking the company private.
Musk published a tweet in 2018 in which he claimed that he had «secured» the privatization of Tesla at a price of 420 dollars per share, which caused a rise of eleven percent in the company’s shares, which subsequently devalued, reaching 263 dollars a month later, as reported by CNN.
Despite his claims of having the funds «secured,» Judge Edward Chen, in April rejected a request by Musk, as well as other senior company executives, to dismiss the case, as «no reasonable jury could find Musk’s tweets accurate or not misleading.»
The trial, to be held in a federal district in San Francisco, will last a few weeks and if the judge rules in favor of shareholders, Musk would have to pay a fine valued at billions of dollars.
Source: (EUROPA PRESS)
