Sunday, January 29, 2023

Elon Musk’s trial begins for a 2018 tweet in which he proposed a Tesla IPO

A tweet from 4 and a half years ago continues to haunt me Elon Musk, Billionaire, founder of Tesla and SpaceX, among other companies, A hearing for the alleged fraud begins this Tuesday the 17th San Francisco (California, USA).

Part of a post on Twitter in August 2018, when Elon Musk raised the possibility of delisting TeslaThere is an electric car company founded by him and of which he is the CEO.

In the message, Musk claimed to be “considering” taking Tesla public by paying $420 per share (just under 390 euros at current exchange rates) and that he had “secured financing”.

He continued to tweet for several hours, “Investor support has been confirmed. The only reason it’s not all certain is that it depends on a shareholder vote.”

This caused, on the one hand, the anger of shareholders, who had lost money as shares fell 10% within hours of the market closing.

On the other hand, it led to an investigation and lawsuit by the SEC (US Securities and Exchange Commission), which accused Musk of stock fraud for making false or misleading statements and requested his disqualification.

Ultimately, the parties reached a settlement agreement in 2019, under which the world’s second-richest man agreed to pay a fine of $20 million (18.5 million euros) and step down as chairman of the business’s board of directors for at least 3 years. expressed. years.

Elon Musk has had to choose between Tesla or Twitter: he has put the first

Musk alleged, “The banks told me that if I didn’t agree to a settlement with the SEC, they would stop providing capital and Tesla would be out of business immediately. It’s like holding a gun to your son’s head.” Is.”

As a result of that tweet, testing begins this Tuesday, resulting in a Class action lawsuit filed by Tesla shareholdersJoe believes that Musk manipulated the market with his message and caused significant price fluctuations, causing them to lose a great deal of money.

The billionaire’s lawyers have tried to move the process from San Francisco to Texas (both in the US), citing the California city’s “local negativity” and thousands of layoffs following the Twitter purchase, but the decision has been overruled by a judge. report by RTVE,

Elon Musk to lose $132,000 million in 2022 after Tesla’s 68% crash, but still world’s second-richest person

For his part, Musk’s attorney Alex Spiro explained in an email a few months ago cnbc Plaintiffs’ attorneys are trying to “make money” and “block the truth” with their claims.

“Nothing will change the fact that Elon Musk was and could be considering taking Tesla public, and this is all half a decade later,” he says.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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