Elon Musk, who tweeted in 2018 that he was ready to take Tesla private, is currently on trial for possible fraud. The jury selection process started in a federal courtroom in San Francisco where Tesla CEO Musk was slated to be one of those called to testify. The incident began in August 2018 when Musk tweeted that he had the money to take Tesla private, causing the stock price to soar wildly.
Stockholders filed a lawsuit against Musk after he tweeted that financing was ‘secured’ to buy out the company’s stockholders, purportedly costing them billions of dollars.
‘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 summarizing the case for potential jurors.
The Tesla tycoon’s attorneys, according to Chen, will contend that any attempts to prove that Musk’s tweet was ‘materially’ false or that shareholders experienced damage as a result would fail at trial.
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