Elon Musk’s fraud trial has begun in San Francisco (video) – Business

A fraud trial against Elon Musk has begun in San Francisco, California. A nine-member jury must decide whether the Tesla chief deceived shareholders by sending fake tweets in 2018. He announced in this tweet that he wanted to delist Tesla, which sent the stock into a spin. His lawyer claims Musk was a little too fast.

In August 2018, Tesla CEO Elon Musk tweeted that the car company intends to take Tesla public and that its financing is complete. Later, Tesla’s shares rose to a record price of about $333. The stock has since fallen more than $200… Investors who bought the stock later relied on the false declaration.

“Plaintiffs allege that these tweets were false and artificially influenced Tesla’s stock price and other securities,” Judge Edward Chen concluded for the jury.

Elon Musk’s lawyer, Alex Spiro, defended the Tesla boss, arguing that he was in a bit too much of a hurry and therefore did not express himself properly. Mr Musk sent the tweet after reading in the Financial Times that Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, had raised a $2 billion stake in Tesla. The sovereign wealth fund has since become Tesla’s seventh largest shareholder. Musk later tweeted, “I’m considering delisting Tesla at $420 per share. Funding secured.”

America’s stock market police, the SEC, had earlier filed a complaint against Elon Musk for the same tweet. The SEC required the CEO to first submit his tweets about Tesla to an attorney for approval.

Before the trial began, Musk requested that the case be moved to Texas, where Tesla’s headquarters are located. In San Francisco, he fears that he will not have the right to a fair trial.

Indeed, Musk recently bought Twitter in that US state and made massive layoffs. His lawyer said that in recent months, local media have published biased and negative articles against Elon Musk. The local press personally accuses Musk of cutting a large number of jobs and even thinks that he is breaking the law by doing so. Local politicians, including the mayor of San Francisco, participated in protests against him. However, the judge refused to transfer the process to another place.

Ellen Thorisaen

In August 2018, Tesla CEO Elon Musk tweeted that the car company intends to take Tesla public and that its financing is complete. Later, Tesla’s shares rose to a record price of about $333. The stock has since fallen more than $200… Investors who bought the stock later relied on the misrepresentation.” Plaintiffs allege the tweets were fake and artificially influenced the stock price. “Tesla stock and other headlines,” concluded the Judge. Edward Chen for the jury Elon Musk’s lawyer, Alex Spiro, defended the Tesla boss, arguing that he was simply in too much of a hurry and therefore misrepresented himself. sent it after reading that it had increased. The sovereign wealth fund then became Tesla’s seventh-largest shareholder. Musk later tweeted, “I’m thinking of delisting Tesla at $420 per share. Funding secured.” The SEC, which oversees the US stock market, had previously filed a lawsuit against Elon Musk over the same tweet. The SEC required the CEO to first present his Tesla tweets to a lawyer for approval. Before the trial began, Mr. Musk said the case is based on Tesla’s headquarters. He asked to be transferred to Texas. In San Francisco, he fears that he will not receive a fair trial. Indeed, Musk recently bought Twitter in this American state and was fired en masse. His lawyer said that in recent months, local media published biased and negative articles against Elon Musk. The local press personally accused Musk of cutting a large number of jobs and even thought that he was breaking the law by doing so. Local politicians, including the mayor of San Francisco, participated in protests against him. But the judge refused to move the trial. Ellen Thorisaen

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