Four years before Elon Musk bought and took Twitter private, he claimed he was going to take his electric vehicle manufacturer Tesla down that route. The world’s second-richest man is now facing his day in court for those claims.
On Aug. 7, 2018, Musk tweeted this to his then 22 million-strong following:
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Tesla’s stock rallied on the news. But days later, when it became apparent that a buyout wasn’t materializing, it fell back down and it fell further.
Investors who incurred millions of dollars of losses due to the stock’s volatility during the 10-day period between Aug. 7 and Aug. 17 that year filed a class action lawsuit against Musk. The trial starts today (Jan. 17) in San Francisco with jury selection, and it’s expected to last three weeks.
Still one of the richest people in the world even after recording the biggest lost in personal fortune ever recorded in history, Musk faces paying millions of dollars in damages if he loses.
“Damages include losses resulting from the effect on the prices of Tesla securities immediately following the August 7, 2018 tweets, that was then corrected from August 8, 2018 to August 17, 2018 as the falsity of the tweets was realized by investors. The damages also include losses suffered by the impact on the prices of Tesla securities resulting from the direct consequences of Musk and Tesla’s false statements such as increased litigation and regulatory risk,...
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