Elon Musk Found Not Liable in Trial Over Tweets Proposing to Take Tesla Private
Wall Street JournalDec 23, 2022
The Facts
On Friday, a US jury in San Francisco, Calif., found Tesla Inc. CEO Elon Musk and his company were not liable for misleading investors, who sought billions in damages over Musk's 2018 tweet that he had the "funding secured" to take the electric car company private.
Shareholders claimed that Musk misled them by tweeting on Aug. 7, 2018, that he had the funding to and was "considering taking Tesla private at $420," later adding that the "only reason why this is not certain is that it’s contingent on a shareholder vote."
The Spin
Narrative A
Though this jury concluded Musk wasn't responsible for investor losses, the fact remains that the world's second-richest man has a tweeting problem. While arguing he has the right to speak freely on the platform, he simultaneously claims that not everything he says should be taken seriously. Whether found guilty in a courtroom or not, Musk should listen to the pleas of his investors and take his volatile social media habits down a notch.
Narrative B
This was the one and only correct verdict. Musk's tweet wasn't fraudulent and he had no ill intent. He simply wanted to inform all shareholders — big and small — of his plans rather than keep the secret solely among the board and wealthy investors. Musk also knew he could use his wealth from SpaceX to take Tesla private if he needed to. He doesn't deserve to be penalized just because the deal didn't go through.
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