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

The fraud trial against Elon Musk has begun in San Francisco, California. A nine-member jury must decide whether the Tesla boss defrauded his shareholders by sending a misleading tweet in 2018. In this tweet, he announced that he wanted to remove Tesla from the stock market, which sent of stocks skyrocketing. His lawyer argued that Musk was too fast.

In August 2018, Tesla CEO Elon Musk tweeted that he was taking Tesla, his car company, off the stock market and that it was fully funded. Subsequently, Tesla shares rose to a record price of nearly $333. The stock has since fallen by more than 200 dollars… Investors, who then bought the stock, relied on a false declaration.

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

Elon Musk’s lawyer, Alex Spiro, argued for the Tesla boss’s defense that he was in a bit 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 Public Investment Fund had raised a $2 billion stake in Tesla. The sovereign wealth fund became Tesla’s seventh largest shareholder. Musk then tweeted, “I’m considering delisting Tesla at $420 per share. Funding secured.”

The American stock market policeman, the SEC, had previously filed a complaint against Elon Musk for the same tweet. The SEC is asking the CEO to first submit his tweets about Tesla to a lawyer for approval.

Before the trial began, Musk requested that the case be moved to Texas, where Tesla is headquartered. In San Francisco, he fears no right to a fair trial.

In fact, Musk recently bought Twitter in that US state and massively fired. In recent months, local media have published biased and negative articles against Elon Musk, his lawyer said. The local newspaper personally accused Musk of cutting a large number of jobs and even thought he was breaking the law in doing so. Local politicians, including the mayor of San Francisco, participated in protests against him. However, the judge refused to move the trial.

Ellen Thorisaen

In August 2018, Tesla CEO Elon Musk tweeted that he was taking Tesla, his car company, off the stock market and that it was fully funded. Subsequently, Tesla shares rose to a record price of nearly $333. The stock fell more than $200… Investors, who then bought the stock, relied on a misrepresentation.”The plaintiffs allege the tweets were fraudulent and artificially influenced the stock price. ‘Tesla stock and other titles ,’ summed up Judge Edward Chen for the jury. Elon Musk’s lawyer, Alex Spiro, argued in defense of the Tesla boss that he was in a bit of a hurry and therefore did not express himself correctly. Mr Musk sent tweet after reading in the Financial Times that Saudi Arabia’s sovereign wealth fund Public Investment Fund raised a $2 billion stake in Tesla. The sovereign wealth fund became Tesla’s seventh largest shareholder. Musk then tweeted, “Considering -I consider Tesla delisting at $420 per share. Funding secured. ” The US stock market watchdog, the SEC, previously filed a lawsuit against Elon Musk over the same tweet. The SEC requested that the CEO first submit his tweets about Tesla to a lawyer for approval. Before starting the trial, Mr. Musk requested that the case be moved to Texas, where Tesla is headquartered. In San Francisco, he fears he does not deserve a fair trial. In fact, Musk recently bought Twitter in this American state and was widely dismissed. In recent months, the local media has published biased and negative articles against Elon Musk, his lawyer said. The local press personally accuses Musk of cutting a big number of jobs and even thought he was breaking the law in doing so. Local politicians, including the mayor of San Francisco, participated in protests against him. However, the judge refused to move the p aglilitis.Ellen Thorisaen

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