Lawyers for the electric vehicle company Tesla and its executive director, Elon Muskasked a federal judge to move or delay a trial from the state of California at Texas claiming that impartial jurors cannot be found due to the “local negativity” that there is in that state towards Musk.
Musk and several Tesla board members will face a popular jury this year in a shareholder class action lawsuit alleging that the CEO manipulated Tesla’s stock in 2018 when he tweeted that he was considering taking his electric vehicle company private.
So, the Securities and Exchange Commission (SEC) stated that the information disseminated in the tweet was “false and misleading”fined Musk and Tesla $20 million and also forced Musk out of Tesla’s presidency for three years.
READ ALSO: Financial inclusion: the card for Peruvians with visual disabilities
An upcoming trial this year will determine whether and how those Musk tweets affected Tesla’s stock price, and whether the company or its directors should be held liable and pay damages.
In a motion to transfer the seat filed this week, lawyers representing the company and the mogul argue that Musk has been widely criticized in California after he bought Twitter in October last year.
Following the purchase of the social network, Musk named himself CEO of Twitter and carried out massive layoffs at the California-based company.
“Local negativity towards Musk is not limited to the press. There are regular protests and pickets outside Musk’s San Francisco offices.” detail the lawyers in the document presented this Friday.
Musk was booed last December after comedian Dave Chappelle invited him up on stage at one of his performances in San Francisco, California.
In 2018 Musk resided in California and Tesla was headquartered in the Californian city of Palo Alto.
However, the CEO of Tesla and SpaceX moved to Texas in 2020 and his electric vehicle company moved its headquarters to Austin, Texas in 2021.
Source: EFE
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
