Elon Musk is headed to trial next week over his infamous tweet claiming he had secured funding to take Tesla private at $420 a share. A 10-day civil trial with jury selection scheduled for Tuesday, January 17, is set to begin in US District Court for the Northern District of California.
The class-action lawsuit alleges Musk harmed investors with this tweet from August 7, 2018: “Am considering taking Tesla private at $420. Funding secured.” Additional statements by Musk and Tesla reinforced the false impression given by Musk’s going-private claim, the lead plaintiff says.
“As a result of the turmoil in the prices for Tesla stock, options, and bonds caused by Musk and Tesla’s statements, investors lost billions of dollars from August 7, 2018 to August 17, 2018,” lead plaintiff Glen Littleton’s trial brief in October said. “These damages include losses resulting from the effect on the prices of Tesla securities immediately following the August 7, 2018 tweets, that was then corrected from August 8, 2018 to August 17, 2018 as the falsity of the tweets was realized by investors… Absent Musk and Tesla’s fraudulent statements, these losses would not have been suffered by Tesla investors.”