On Friday, the federal judge overseeing a trial in San Francisco involving Tesla Inc. Chief Executive Elon Musk decided that he should not be held liable for his tweets from 2018 about taking the company private at $420 per share—a tweet prosecutors allege was meant to manipulate stock prices.
Musk testified last week that he believed his tweets about taking Tesla private were “the right thing” to do for all of the company’s shareholders.
In a ruling earlier this month, U.S. District Judge Edward Chen ruled that Elon Musk’s tweets about taking Tesla private were not true and that the CEO had acted with recklessness in making them—but it remained for jurors to decide whether those tweets were material enough for investors to lose money over or if their losses could be traced back some other way (not just by reference but factually connected directly)?
The three-week trial included testimony from other Tesla executives and board members, as well as current and former employees. At one point during the proceedings—in a moment of levity—a lawyer referred to Musk by his online handle: “Mr. Tweet”
Tesla shares rose 1.6% in the extended session Friday, after closing up 0.9% during regular trading hours. The stock has lost 36% over the past year—compared to losses of around 8 percent for the S&P 500 index —SPX, -1.04
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