The attorney representing Tesla investors just unleashed a bomb on America that could send shockwaves through the tech industry, the social media industry, the economy, and the stock market.
Elon Musk lied about funding.
The Guardian is currently reporting that the CEO of Tesla, Elon Musk, is on the schedule to testify in a San Francisco courtroom in regards to allegations "that he manipulated the price of the company’s stock in 2018 by tweeting about a plan to go private."
According to the lawyer, Musk lied in 2018 by saying he had "funding secured" to take the electric car company private.
The class-action lawsuit was brought about by Tesla shareholders who bought the stock at an all-time high who are frustrated that they are currently taking a loss on the stock. According to them, they would not be in this situation had Musk not "lied when he claimed in an infamous tweet that he had 'secured' funding to take Tesla private at a price of $420 per share, causing the stock price to soar."
The court seems to already have accepted that Musk's public comments did impact Tesla's stock price. But that's not a crime. They're looking into "whether Musk intentionally manipulated the stock price through his tweets and, if so, how much money investors lost as a result. The jury will also examine whether Musk lied or acted recklessly when he made claims about funding for the potential buyout."
Age 71 investor Glen Littleton from Missouri was the first witness called to the stand. He said he never would have invested if it weren't because of Musk's famous tweet. If it turned out that Musk intentionally lied in the Tweet, it could be very bad news for the new owner of Twitter.
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