Elon Musk cleared of class action lawsuit filed by Tesla investors

A federal court in San Francisco has acquitted the Tesla CEO Elon Muskof a class action lawsuit stock fraud presented by a group of investors of the mentioned company.

After a three-week trial, billionaire tycoon Elon Musk has been acquitted of the alleged commission of a stock fraud crime linked by your posts posted on Twitter in 2018in which he claimed to have the necessary funds to take the company off the stock market, something that has never happened.

“I am considering taking Tesla off the stock market at 420 dollars (380 euros). Secured financing”, Musk posted on Twitter, two years before becoming the CEO of the social network. “Investor support is confirmed. The only reason it’s not certain is that it depends on shareholder vote,” he added later.

As Bloomberg has reported, Tesla shareholders filed a lawsuit against MuskTesla and the board of directors of the company for the messages arguing that said financing was not secured and also alluding to the commercial losses caused due to the fluctuations of Tesla’s shares after the tweets.

Musk’s lawyer, Alex Spiro, has claimed that Musk’s Twitter messages were “technically inaccurate”. “Just because it’s a bad tweet doesn’t make it a fraud”, he added, as ABC News has collected. The businessman alleged during the trial that he had the objective of obtaining financing for a alleged delisting of Tesla thanks to the Public Investment Fund of Saudi Arabia and that, therefore, his messages on Twitter were intended to inform investors of his intentions.

For his part, investors’ lawyer Nicholas Porrit argued that Musk could not have had a firm agreementsince he only had a 45-minute meeting with the leader of the Saudi fund, Yasir al Rumayyan, in a Tesla factory on July 31, 2018 and there was no written documentation, as ABC News has stated.